SNP flags up funding option

The SNP leader outlined his funding proposals

Scottish National Party Leader John Swinney has put forward his alternative to private finance initiatives (PFI) as the best way to modernise public services.

The SNP has already attempted to cast doubt on the private public partnerships (PPP) widely used by the Scottish Executive to fund new projects.

Now it wants to pilot its alternative - public trusts which would borrow for capital investment but without seeking to make a profit.

The Scottish Labour Party accused Mr Swinney of pursuing his own political goals at the expense of education and health.

The SNP wants more money for health services

Falkirk Council is preparing a £50m scheme to refurbish and rebuild secondary schools.

The council - led by a coalition of SNP and independent members - will urge the executive to fund its trust plan.

Mr Swinney used a keynote speech to party councillors in Edinburgh to claim that an SNP government would match the executive's project "brick by brick" and save millions of pounds.

He said that PFI projects in Scotland cost the taxpayer between £53m and £80m - money that could be invested in health and education.

"I can make a cast-iron guarantee to the people of Scotland," Mr Swinney went on.

"Every school, every classroom, every hospital, every ward that this executive plans to build will be built by an SNP government.

Election call

"Not one project will be abandoned. We will match them brick for brick.

"Tax revenue that currently goes out of the public services under PFI will stay in the public services under the SNP.

"By operating on a not-for-profit basis, millions of pounds currently paid out in private profit will instead be retained for public services."

The SNP wants more money for health services

He reiterated that the SNP was a credible alternative to the Labour/Liberal Democrat coalition.

But Finance Minister Andy Kerr said the nationalists' plan was flawed and did not stand up to scrutiny.

"Their scheme would mean cutting spending, increasing borrowing, or raising taxes," he said.

"While John Swinney criticises the benefits that public-private partnerships bring, SNP councils use PPP to deliver local benefits - just like Labour councils."