Business leaders are calling for more investment in transport

Finance Minister Andy Kerr set out his spending priorities at Holyrood on Wednesday afternoon.

Small businesses want investment to teach basic skills and education chiefs want more cash for universities.

The Scottish Tories demanded relief for tax payers while the Nationalists said Mr Kerr could never give enough.

The economics adviser to the Holyrood finance committee, Arthur Midwinter, said he wanted to see that the executive had targeted its priorities and that it was linking resources to results.

He said: "In terms of priorities, the executive have set themselves four, with the top being economic growth.

North Sea oil revenues alone this year would give us more of an increase than the total increase being given by the Treasury over the next three years Nicola Sturgeon SNP

"The others, such as improving public services or strengthening communities, frankly are so vague almost any spending proposal can be defended against them."

John Downie, from the Federation of Small Businesses, had a wish list which included greater investment in basic skills and education.

He added: "We have to see more investment in transport and we have to see reform of the planning system."

Mr Downie believed that the most important issue was to have spending commitments which matched the strategy, otherwise it was "all just rhetoric".

The lack of tuition fees north of the border means public funding is even more crucial, said David Caldwell from the umbrella body University Scotland.

He said: "We don't want to be left behind England, we don't want to be left in the business of always wanting to catch up, we want to stay ahead.

Pocket money

"And therefore it is very important that there is additional investment at a very significant level at this time that keeps us ahead of England.

"Funding in England is going to increase very rapidly because of tuition fees. Now, we are not going to have tuition fees in Scotland and that is fine, but if the money isn't coming from tuition fees it has to come from government."

Scottish Conservative leader David McLetchie reckons "hard-pressed" taxpayers should benefit from the budget statement.

He said: "I would certainly like to see a reduction in business rates and I would like to see some direct funding of council services so we can cut council tax by a very substantial amount indeed across the board."

The Scottish National Party's Nicola Sturgeon said Scotland would be much better if could stand on its "own two feet as an independent nation and look after its own economy rather than simply redistribute the pocket money which the chancellor gives us".

She added: "North Sea oil revenues alone this year would give us more of an increase than the total increase being given by the Treasury over the next three years."