Wednesday 28 January 2009

Tavish Scott on today's budget vote

This evening and tomorrow morning on the news and in the newspapers you will see that the Liberal Democrats voted against the SNP Government's Budget.

As you will recall from my email two weeks ago, we warned the SNP that this Budget was an inadequate response to the economic situation currently facing facing Scotland. We warned that without the radical changes necessary to support the economy, we would vote down this Budget.

Unprecedented times call for unprecedented measures. Unfortunately for Scotland, the SNP's budget failed to live up to this truism.

I have repeated tonight, to the First Minister and other party leaders, that we remain open to discussions on taking forward a Budget for Scotland that meets the needs of these turbulent economic times.

It is important for a Scottish Budget to be passed - however it is important that the Budget is the right one for our times. It is the duty of Ministers to come back to Parliament with a Budget that can make a real difference to Scotland.

Let's be clear. This is not the West Wing. There is no immediate threat to public services. The current year's Budget continues to operate and can sustain public services indefinitely. But, evidently, it is a matter that is better sorted sooner rather than later.

When I toured and telephoned across Scotland last summer as part of the Leadership campaign for our Party I was urged to do two things. "Be bold and distinctive" and "Be relevant". That is advice that I have taken seriously, not least when considering the SNP Government's Budget.

These are unprecedented times. Unemployment is at its highest level for 12 years; job losses are escalating; Government borrowing is at record levels; the pound is at a 25-year low against the dollar and approaching parity with the Euro; and today's shocking Scottish GDP figures should ring alarm bells very loudly.

Yet the SNP budget put to the Scottish Parliament for consideration today was only one per cent different from their original Budget of 2007. A variation of one per cent forms the weakest response of any Western European Government, national or devolved, to the economic difficulties we face in 2009.

The SNP budget, supported by the Conservatives, was woefully inadequate and the Liberal Democrats simply could not support measures that do not respond to the ferocity of the economic storm. We proposed a 2p income tax cut that would put £330 in the pockets of every low and medium earner in Scotland. It would be a real help to struggling families and individuals when they need it most.

Indeed, only today, an economic analysis from the Scottish Parliament Information Centre shows that our income tax proposal would also support 9,200 direct and indirect jobs.

Yes, we have been bold, distinctive and relevant from the very outset.

Remember what the Scotsman wrote recently: "The only serious budget proposal to boost the economy is a 2p income tax cut put forward by the Lib Dems".

Unfortunately, the SNP rejected even the principle of tax cuts out of hand. Scotland needs a budget, but a budget that will make a difference.

Our door remains open and I will keep you up to date over the coming days.

Kind regards,

Tavish Scott