Lib Dems want more spending on mental health and education in return for backing SNP's Holyrood budget

Talks have been held between the Liberal Democrats and the SNP over a deal that could end first minister John Swinney's reliance on the Greens to get his spending plans through Holyrood, reports the Daily Record.

A Scottish government source confirms the story:

"There is a long way to go but yes talks are ongoing with the Lib Dems and we are open to working constructively with them. Something could still be agreed with the Greens but when people are constantly laying out red lines in public rather than talking through what are going to be tough financial decisions, it does erode working relationships."

And a Lib Dem source says:

“One area we are keen to see more public spending increased is for mental health services, there are also various infrastructure projects we believe should be prioritised and we want to see a greater emphasis on education."

It's worth remembering that the Labour/Lib Dem coalition in Holyrood's early years seemed popular with Lib Dem voters because it delivered the sort of policies they were voting for.

The Record suggests this year’s Scottish budget will be difficult because of the impact of inflation and public pay deals. But it goes on to say that changes to borrowing rules made by Rachel Reeves in her budget have increased the money Scotland will receive in block grant payments.