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Budget secured by Scottish Government’s £52m concession to opposition parties

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Concessions to opposition parties worth £52 million were enough to ensure the Scottish Government’s Budget passed through parliament.

Finance Secretary John Swinney secured the votes of the Liberal Democrats and the Tories by including extra measures to support students and small businesses.

The North Tayside MSP announced funds including £15 million for college bursaries and £8 million for an extra 1200 college places in 2011-12 both called for by the Lib Dems, who received another £3 million worth of commitments.

In response to Tory demands he also revealed an extra £26 million in support for employment creation and help for first-time buyers.

Mr Swinney said parliament’s decision to rule out a levy on large retailers the so-called Tesco Tax had left the £33 billion spending plans with a £30 million hole.

However, he outlined revised Budget forecasts for non-domestic rates and a £130 million pot carried over from this year to the next.

This freed up money to fund additional new measures, including a Post Office diversification scheme, urban regeneration, increasing the number of modern apprentices to 25,000 and investment in housing.Key commitmentsThe bill will also deliver key SNP commitments to concessionary bus travel, free prescriptions and a continued council tax freeze.

It was passed by 79 votes to 48, with Labour and the Greens voting against.

The minority SNP administration had required the support of opposition MSPs to carry the Budget and had been involved in lengthy negotiations all week.

Last night the Lib Dems and the Conservatives were celebrating getting what they wanted.

“This is a better Budget because of Liberal Democrat involvement,” said Lib Dem finance spokesman Jeremy Purvis. “Students now have additional places at college and bursary support. So students gain, the economy gains, employers gain and the country gains.

“We have also secured funding for additional modern apprentices and funding for a second year of our Post Office Diversification Fund.”

Tory leader Annabel Goldie said her party had been the “voice of common sense” and “delivered” for Scotland.

“We have made this Budget better,” she added. “We have built upon our successes of previous years and used our influence and our votes to be the pivotal force in Scottish politics.

“It is an impressive list of achievements which we have delivered for Scotland.”FailingHowever, Labour finance spokesman Andy Kerr accused the government of failing Scotland.

“The SNP are implementing over £1 billion of Tory cuts with the heaviest blows falling in areas that drive growth and create jobs, such as higher education, enterprise and regeneration,” he said.

“It is our duty to say that it is not good enough for Scotland. Scotland does deserve better and in 12 weeks time Scotland will have the choice of a better government.”

Health secretary Nicola Sturgeon accused Labour of hypocrisy, saying, “Labour have put themselves on the wrong side of the Scottish people. Labour have voted against a record 25,000 apprenticeships for Scotland’s young people and against £20 million of investment in jobs.

“This is nothing but irresponsible political hypocrisy from Labour and they will rightly be held to account by Scotland’s electorate.”

Speaking after the vote, Mr Swinney said, “In the face of a £1.3 billion cut in public spending imposed on Scotland by the UK Government, this is a Budget that boosts economic growth and protects our vital front-line services.Listening”The Scottish Government has listened to the calls that others have made and we have responded in the spirit of building consensus across this chamber.

“This is a Budget that best meets the needs of the people of Scotland and I am delighted that parliament has supported it today.”

Other measures contained in the Budget include a pay freeze covering public sector employees earning more than £21,000 a year.

It applies to government staff, employees of government agencies and non-departmental bodies. Staff earning under the threshold will receive a minimum increase of £250.

It also gives councils a better-than-expected 2.6% budget reduction for signing up to a range of spending priorities, such as continuing the council tax freeze and maintaining police numbers.