River Forth Crossing

Part of the debate – in the House of Commons at 10:36 pm on 18 May 2009.

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Photo of Angela Eagle Angela Eagle The Exchequer Secretary, Member, Labour Party National Executive Committee 10:36, 18 May 2009

The principle that has been accepted is in respect of increased flexibilities, some certainty on end-of-year funding, the Barnett consequentials of Crossrail and a range of other things. We are trying to say in advance to the Scottish Executive that if they were to put together a package in such a way, there would be no doubt about some of the decisions on end-of-year flexibility, so they could act with confidence.

It is easy to say that the flexibilities contain no new money, but they account for nearly £1 billion of extra assistance. Obviously, £500 million of Crossrail-Barnett consequentials were going to Scotland anyway. It is perfectly reasonable of the Government to say that if the Scottish Executive wish to use that money to bring forward the second Forth bridge, they can do so. Some of the other parts of that package would have given certainty about the consequences of extra efficiency savings or the income from extra asset disposal. If we gave certainty, that money would, under the waiving of normal Treasury rules, be allowed to be put into the pot for funding the bridge. Saying that there is no new money is a possible analysis, but I dispute it.