Labour leads all-party attack on SNP budget

LABOUR is close to sealing a cross-party deal that would block the SNP Budget unless millions of pounds in extra funding is given to Scotland's cash-starved universities.

Opposition politicians are furious that the higher education sector received only half the money it asked for in the Nationalists' first Holyrood Budget and are working on a deal to force extra cash from the minority Government.

Under the plan, Labour, the Lib Dems and Tories would unite to form a parliamentary majority and vote through an amendment which takes millions from one part of the SNP Budget and hands it to hard-pressed universities.

Scotland on Sunday can reveal that the Lib Dems have already signed up in principle to the deal and the Tories have agreed to enter into discussions with Labour.

University funding was seen as one of the big losers in last week's SNP Budget. Universities Scotland had wanted £526m over three years but instead received just £263m.

Higher education chiefs fear the lack of cash will result in the most talented staff heading to better-paid jobs outside the country and that the quality of Scottish university tuition and research will decline.

Rhona Brankin, Labour's education spokeswoman, is leading the bid to "hijack" the SNP Budget. If Labour forges a temporary coalition with the Lib Dems and Tories, they will have 78 out of Holyrood's 128 votes, giving them a comfortable majority.

Amendments will be put to Parliament which will switch up to £90m of Budget cash over three years to universities. Labour insiders believe the SNP's commitment to freezing council tax is one area from which money could be freed.

Brankin told Scotland on Sunday: "We're throwing down the gauntlet to the SNP. We have been talking to the other parties about this and we believe there is widespread dismay about the level of funding for universities. Last week, John Swinney went to Glasgow University to launch his economic strategy in the full knowledge that he was then going to cut the university funding which is so vital to our economic future."

A Scottish Lib Dems spokesman said: "Universities are vital to our economy and we are deeply disturbed at the inadequate settlement. There's a lot in this motion that we are sympathetic to, and we would want to amend the funding for universities in any case. There is scope for working together."

Murdo Fraser, the Tory education spokesman and deputy leader, said: "We are certainly prepared to talk to Labour about a move to amend the Budget on this issue, but we're still studying the budget and we can't make any firm commitment at this stage."

If either the Lib Dems or Tories back out and abstain, it may be theoretically possible for

Labour to form a majority with the help of the Scottish Green Party. But Green leader Robin Harper said that while they wanted more money for universities they would attempt to do that by "negotiation" rather than "obstructing the budget".

The Nationalist strategy in the face of any Budget-wrecking coalition will be to offer individual deals with opposition parties in which they find extra funding for their key policies in return for helping to vote through the budget. Sources in both the Tories and the SNP have indicated that they could reach some kind of deal on cash for justice and law and order.

A senior source close to First Minister Alex Salmond said: "Under the Scotland Act, those who propose amendments to the Budget must explain what they would cut to make up for their extra spending.

"We challenge Labour to tell the people of Scotland which hospitals they want to close, which health services they want to cut, and how they will cut back on community safety to pay for their plans. Labour over-allocated £250m, they allotted money that wasn't there to budgets. We are having to sort out their mess."

Scotland's leading academics have admitted worries that universities north of the Border will fall behind because of competition from English institutions for the best staff.

Universities in England are allowed to charge top-up fees for their courses, with that cash being ploughed into better facilities and higher salaries. Ministers in Scotland have refused to allow the charges to be levied and have hoped to make up for the shortfall through central funding from Government.

Dr Brian Lang, principal of St Andrews University, said last week: "The settlement for higher education in Scotland is quite simply inadequate. It will have serious repercussions for the stability of the sector north of the Border."