Chamber
Meeting of the Parliament 09 February 2011
09 Feb 2011 · S3 · Meeting of the Parliament
Item of business
Budget (Scotland) (No 5) Bill: Stage 3
I have set out today a package of measures that I believe responds effectively to the issues that have been raised with me since the draft budget was published. They are fully funded, without detriment to the substantial package of investment that I announced in the draft budget in November.
The budget reaffirms our social contract with the people of Scotland by providing the resources to continue the council tax freeze and allow for the full removal of prescription charges. Those measures help households facing pay restraint and help to maintain demand in the economy at a time when we face increases in VAT and fuel prices.
We are delivering our commitment to pass to health spending in Scotland the consequentials arising from decisions on health spending in the United Kingdom spending review and we are continuing provisions for free personal care.
We acknowledge and share the Conservative party’s concern about continuing to improve access to drugs, including cancer drugs. We are happy to look at—and to discuss further with the Conservatives—how we make even further progress in improving access to drugs.
We have worked closely with COSLA’s leadership to agree a settlement for local government that maintains its share of the budget, to help maintain the delivery of vital local services and to maintain core commitments on police numbers, school education and adult social care.
This is a budget that supports new business growth, including by continuing the small business bonus scheme as part of a package of business reliefs worth £2.4 billion over five years.
We are taking forward strategic infrastructure commitments, such as the new Forth crossing, the new south Glasgow hospitals project and the school building programme, and we are protecting local government’s share of the capital budget.
I have announced a programme of infrastructure investment worth £2.5 billion in health, education and strategic transport interventions, which will be delivered through the non-profit-distributing model and will help to maintain construction jobs over the medium term despite the severe cuts that have been made to our capital budget. Those investments will all help economic recovery.
We will take forward the £70 million renewables infrastructure fund and, as the Finance Committee recommended, we will continue to make representations to the UK Government about the early deployment of the fossil fuel levy surplus in Scotland.
We remain committed to improving the energy efficiency of Scotland’s housing and to tackling fuel poverty, and are providing £48 million in support for the home insulation scheme and the energy assistance package next year.
I have two final announcements to make. I advise Parliament that I am now in active discussions with the voluntary sector about the establishment of a new initiative to create employment opportunities for those struggling to get access to the labour market. I expect to make an announcement on the proposal very shortly.
Finally, as a consequence of the budget negotiations with the Liberal Democrats, the planned number of modern apprenticeships stands at 16,500. Although that represents a significant commitment, I do not think that it is all that we can do to deliver opportunities for our young people. I therefore announce that the Scottish Government will increase that total in Scotland in 2011-12 to deliver 25,000 modern apprenticeships, which is a record number.
We are doing all these things despite an unprecedented cut of £1.3 billion in next year’s Scottish budget. That is why I believe that we have prepared a budget that best meets the needs of the people of Scotland and why I believe that Parliament should support the budget bill today.
The Government has listened to the calls that others have made of it and we have responded in the spirit of building consensus across the chamber.
Businesses and households across Scotland are acting to put their own finances in order at this most challenging of times, and it is essential for Parliament to do likewise. I commend the budget to Parliament.
I move,
That the Parliament agrees that the Budget (Scotland) (No.5) Bill be passed.
14:48
The budget reaffirms our social contract with the people of Scotland by providing the resources to continue the council tax freeze and allow for the full removal of prescription charges. Those measures help households facing pay restraint and help to maintain demand in the economy at a time when we face increases in VAT and fuel prices.
We are delivering our commitment to pass to health spending in Scotland the consequentials arising from decisions on health spending in the United Kingdom spending review and we are continuing provisions for free personal care.
We acknowledge and share the Conservative party’s concern about continuing to improve access to drugs, including cancer drugs. We are happy to look at—and to discuss further with the Conservatives—how we make even further progress in improving access to drugs.
We have worked closely with COSLA’s leadership to agree a settlement for local government that maintains its share of the budget, to help maintain the delivery of vital local services and to maintain core commitments on police numbers, school education and adult social care.
This is a budget that supports new business growth, including by continuing the small business bonus scheme as part of a package of business reliefs worth £2.4 billion over five years.
We are taking forward strategic infrastructure commitments, such as the new Forth crossing, the new south Glasgow hospitals project and the school building programme, and we are protecting local government’s share of the capital budget.
I have announced a programme of infrastructure investment worth £2.5 billion in health, education and strategic transport interventions, which will be delivered through the non-profit-distributing model and will help to maintain construction jobs over the medium term despite the severe cuts that have been made to our capital budget. Those investments will all help economic recovery.
We will take forward the £70 million renewables infrastructure fund and, as the Finance Committee recommended, we will continue to make representations to the UK Government about the early deployment of the fossil fuel levy surplus in Scotland.
We remain committed to improving the energy efficiency of Scotland’s housing and to tackling fuel poverty, and are providing £48 million in support for the home insulation scheme and the energy assistance package next year.
I have two final announcements to make. I advise Parliament that I am now in active discussions with the voluntary sector about the establishment of a new initiative to create employment opportunities for those struggling to get access to the labour market. I expect to make an announcement on the proposal very shortly.
Finally, as a consequence of the budget negotiations with the Liberal Democrats, the planned number of modern apprenticeships stands at 16,500. Although that represents a significant commitment, I do not think that it is all that we can do to deliver opportunities for our young people. I therefore announce that the Scottish Government will increase that total in Scotland in 2011-12 to deliver 25,000 modern apprenticeships, which is a record number.
We are doing all these things despite an unprecedented cut of £1.3 billion in next year’s Scottish budget. That is why I believe that we have prepared a budget that best meets the needs of the people of Scotland and why I believe that Parliament should support the budget bill today.
The Government has listened to the calls that others have made of it and we have responded in the spirit of building consensus across the chamber.
Businesses and households across Scotland are acting to put their own finances in order at this most challenging of times, and it is essential for Parliament to do likewise. I commend the budget to Parliament.
I move,
That the Parliament agrees that the Budget (Scotland) (No.5) Bill be passed.
14:48
In the same item of business
The Presiding Officer (Alex Fergusson)
NPA
The next item of business is a debate on motion S3M-7899, in the name of John Swinney, on the Budget (Scotland) (No 5) Bill. I advise members that time is pr...
The Cabinet Secretary for Finance and Sustainable Growth (John Swinney)
SNP
Parliament approved the general principles of the Budget (Scotland) (No 5) Bill in last month’s stage 1 debate. Since then, I have continued to hold extensiv...
The Presiding Officer
NPA
Order. I am sorry, but since the cabinet secretary began speaking, I have heard an almost non-stop running commentary from some members on my right, particul...
John Swinney
SNP
I have set out today a package of measures that I believe responds effectively to the issues that have been raised with me since the draft budget was publish...
Andy Kerr (East Kilbride) (Lab)
Lab
Of course, a Government’s budget is not only a list of spending commitments such as the one that we have just heard. Cumulatively, over the years, line by li...
The Presiding Officer
NPA
One moment, Mr Kerr. You have made your point. The cabinet secretary was heard in relative silence and I ask that Mr Kerr receive the same treatment.
Andy Kerr
Lab
I have met Mr Swinney and his colleagues on many occasions in the past few weeks to discuss matters that are dear to our hearts. While we have been having th...
John Swinney
SNP
Does Mr Kerr acknowledge that unemployment in Scotland is falling, while unemployment in the rest of the United Kingdom is rising, and that the measures that...
Andy Kerr
Lab
Mr Swinney offers box ticking on arrangements around parties. He offers half measures while Labour offers full measures. The SNP Government has been saved by...
John Swinney
SNP
Will Mr Kerr share with Parliament which of the proposals that I have announced this afternoon he does not support?
Andy Kerr
Lab
We do not want half measures. Labour offers full measures and we will ensure that we deliver those in government. The budget has moved 0.1 per cent. Let us r...
Alasdair Allan (Western Isles) (SNP)
SNP
Will the member give way?
Andy Kerr
Lab
In a second, when the member might answer my next point.We have been nothing but consistent in our view of this Government’s investment in infrastructure. It...
Alasdair Allan
SNP
Does the fact that the member has been unable to identify which of the cabinet secretary’s measures he disagrees with explain why he failed to lodge any amen...
Andy Kerr
Lab
From my eight years in government, I recall that the SNP lodged only one amendment to the budget. I also recall that in the negotiations around the SNP Gover...
Derek Brownlee (South of Scotland) (Con)
Con
Mr Kerr was right in one respect: that was certainly a vision, although perhaps not quite the vision that he wants to portray to the Scottish people.The budg...
The Presiding Officer
NPA
Order.
Derek Brownlee
Con
It is obvious that the art of co-operation learned by the Liberal Democrats in supporting and working with us at Westminster has rubbed off at Holyrood, and ...
Jeremy Purvis (Tweeddale, Ettrick and Lauderdale) (LD)
LD
Yesterday, I spoke to a major employer in my constituency where there are major concerns about the future of a number of jobs. The company has a heritage tha...
Derek Brownlee
Con
I think the member forgot to say that they also wrecked the public finances.
Jeremy Purvis
LD
Well, indeed, but I had not finished quoting Mr Miliband’s Fabian Society speech. If Labour—
Andy Kerr
Lab
Will the member take an intervention?
Jeremy Purvis
LD
I will in a moment, because I am sure that Mr Kerr will wish to reply to Mr Miliband, so I will give him the opportunity to do so.If Mr Kerr’s vision has bee...
Andy Kerr
Lab
I refer the member to my earlier speech. We stand for the progressive majority in Scotland, but on the point—Interruption.
The Presiding Officer
NPA
Order.
Andy Kerr
Lab
What would he say to his UK coalition partners—the Lib Dems have made the biggest mistake in UK politics for a long time—about regulation? They advocated to ...
Jeremy Purvis
LD
If Mr Miliband’s statement was a flip, that was definitely a flop, Mr Kerr.When Scotland’s Colleges made a public statement that it was concerned that the re...
The Presiding Officer
NPA
Order. There is still too much background noise on a continual basis from members right across the chamber. Let us hear one speech at a time.
Jeremy Purvis
LD
It is not just a political gain for the Liberal Democrats or any other political party; it is a gain for students, such as the students at Borders College wh...
Johann Lamont (Glasgow Pollok) (Lab)
Lab
Will the member take an intervention?