'pounds 500m loss for Scotland'.

LABOUR and the Scottish government clashed yesterday over the Budget's effects on Scotland.

First Minister Alex Salmond claimed Scotland was set to lose almost pounds 500million.

But Labour leader Iain Gray insisted the Scottish budget would grow by pounds 2.2billion in the next three years. He challenged Salmond to follow Labour's lead at Westminster by safeguarding front-line services and to a commitment to a five per cent spending rise for local health services and a four per cent rise for schools.

However, Salmond said what Labour proposed would mean a loss of 9000 Scots jobs..

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CLASH: Salmond