09 FEB 2011

Scottish Conservatives secure £2bn worth of concessions in this parliament

Speaking in the chamber as this year's Budget confirmed Scottish Conservatives have secured over £2bn worth of concessions in the lifetime of this parliament, Derek Brownlee MSP, Shadow Cabinet Secretary for Finance & Sustainable Growth, said (check against delivery):

This is not a Conservative budget – members will have to wait until March 23rd for one of those - although that will of course be a Liberal Conservative budget in the best progressive tradition of both our parties. 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 in Holyrood and I welcome that.

This budget is a compromise – and it is the better for that.

It is obvious it is not a Labour budget – it balances, and doesn't add another £200 billion to national debt.

This Government – as its predecessor did – proclaims that growing the Scottish economy is its top priority. We did not feel that aim shone through the original draft budget, a sentiment echoed by the Economy Committee and many outside observers.

So changing the Budget to promote jobs and growth was vital.

When I asked a panel of economists in the Finance Committee how the budget could be improved to promote economic growth and jobs, they were as clear as any group of economists could ever be expected to be: investment in housing has a quick and significant impact.

Today we have achieved significant additional investment in housing to provide additional jobs, and to help more Scottish families get on the housing ladder.

But the Conservatives have always believed that job creation doesn't just come from large firms: small business, including sole traders, have a part to play.

It can be a big step moving from being a sole trader to an employer; but it can cumulatively have a big economic impact. And the need to increase exports to grow the Scottish economy is well established. Support for exporters is good news for Scottish jobs.

These measures do make a meaningful difference to what was in the draft budget. 

Over this Parliament, we have secured significant achievements:

- 1,000 additional Police

- A £60m Town Centre Regeneration Fund

- The reduction and abolition of business rates for tens of thousands of small businesses

- Transparency in Government spending – the first part of the UK to do this

- The Beveridge Report, which changed the terms of debate on public spending options in Scotland

- The Council Tax Freeze

And this year, building on the draft budget which protected NHS spending and froze public sector pay above £21,000 to protect jobs – as delivered by the Conservatives at Westminster – we now have action on the two areas we sought improvement in this Budget: help to the private sector to create jobs, and the beginning of moves to reform public services.

The new measures for small business job creation will help Scotland's small businesses take on extra staff, provide assistance to those wanting to start up in business and give additional help to exporters.

The additional funding for housing will not only allow many families to get on the housing ladder, it will provide a timely boost to the construction industry and create and protect thousands of jobs.

Other housing measures announced today as a result of our discussions will help first time buyers and allow developers get on with delivering the additional housing Scotland needs.

The reform of absence management has the potential to release multi-million pound savings and provide those off work through ill health with the help they need to get back to work as quickly as possible. A 2 day reduction in absenteeism across the devolved public sector could save £138m a year.

We welcome the commitment to progress on access to Cancer Drugs.

All of this on top of the welcome rejection of the additional tax on shops, which put jobs and investment at risk.

The measures fit against the background of the Liberal Conservative UK Government reducing corporation tax, lifting the lower paid out of tax, reforming the welfare state to make work pay and providing a national insurance holiday for new Scottish start up businesses.

This is a platform for economic recovery and job creation, with Scottish and UK Governments working together with the same aim.

Let me turn to the issue of college bursaries, an issue raised by all parties in debate on the budget – including not just the Conservatives, Liberal Democrats and Labour but I know SNP members too.

We have today a solution for this year, which is welcome. But what we need is a solution for every year.

Students whether they are in higher or further education are rightly wary of what promises politicians make before elections and it is obvious to everyone that the current funding arrangements for further and higher education, and student support, cannot be sustained without reductions in student numbers, or a reduction in the quality of education.

What is needed are additional sources of income for both the FE and HE sectors and that is why the Scottish Conservatives want to introduce a graduate contribution.

Having protected the NHS, and wishing to avoid Council Tax rises, there are few options available to reduce spending elsewhere on the scale required to maintain the existing funding model.

That is why I agree with Nick.

Overall the package of measures announced today moves the Budget substantially in the right direction.

So today the Conservatives will vote for this Budget having again secured significant progress on delivering Conservative priorities – creating jobs and reforming public services.

This budget takes effect from April and the decisions Parliament takes today will be implemented largely in the next Parliament.

We hope to be in a position of still greater influence in that next Parliament, but for the avoidance of doubt let me make clear that if any Government, of any colour, seeks to remove what we have achieved in this or previous budgets there will be a high price to pay.

We have delivered across a range of policy areas substantial achievements in this Parliament and will vote for this budget to deliver on more.

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