Lib Dem leader says Budget deal with SNP now 'more attractive proposition'

But Alex Cole-Hamilton insisted the Scottish Government will still have to "move mountains" if it wants to secure his party's support. 

He was speaking to The Scotsman ahead of further talks between the Liberal Democrats and finance secretary Shona Robison on Thursday, which will also be attended by public finance minister Ivan McKee.

The SNP runs a minority administration in Holyrood and so needs support from another party to get its tax and spending plans through parliament. Failure to do so could ultimately result in the collapse of the government and a snap election.

Labour Chancellor Rachel Reeves announced an additional £3.4 billion for Scotland in the recent UK Budget, which gives the Scottish Government more money to play with when drawing up its own spending plans.

Asked if this made a Budget deal more likely, because the SNP could offer to spend more money in areas important to the Lib Dems, Mr Cole-Hamilton said: "I think it certainly removes some of the barriers that existed before.

“I think if we had been asked to be midwives to further SNP cuts which cause untold pain in our communities and our public services, then that would have been very difficult for us."

He added: "It's a tall order to ask another party, such as the Liberal Democrats, to be the midwife to further cuts in this landscape of economic desolation that the SNP have created in their 17 years of government.

"With that removed, with that threat removed, there’s actually potentially money to restore some of that funding - I think that's a more attractive proposition.

"But like I say, we're a great distance apart. They will need to move some mountains to get us where they need us to be."

A deal with the Lib Dems is seen as the most likely route forward. The relationship between the SNP and the Greens soured earlier this year as a result of the collapse of their co-operation agreement.

Mr Cole-Hamilton said his party’s key demands will include ending Scottish Government spending on independence and killing off the National Care Service plans.

He added: "And of course, on a positive basis, we want to be sure this Budget is full of things like a restoration of funding to local government, and making sure that we have the tools we need to combat the mental health crisis we're facing, that people can access local health care near them when they need it."

The Lib Dem leader said his party also "hope and expect things like lifeline ferry infrastructure to be baked into the Budget".

Asked about the likelihood of a Budget deal, Mr Cole-Hamilton, whose party will meet for its autumn conference in Perth on Saturday, said: "Look, we're grown ups. It's a parliament of minorities.

“I think our constituents would take a dim view if there weren’t liberal asks being put to the fore in the Budget cycle, as we always do. We have backed Budgets previously. It's not a big surprise. It's not world-ending to back an SNP Budget.

"Nevertheless, I think there is still a great distance between us. We're open to more talks, but we're a long, long way from any kind of conclusion."