Plans for a £120m rail link between Glasgow’s airport and city centre have been abandoned by the Scottish government as it prepares for a 'significant squeeze' on public expenditure.

But John Swinney, finance secretary, insisted the minority Scottish National party administration would press ahead with preparations to build a replacement bridge across the Forth, costing up to £2.3bn – a priority for the business community.

Presenting his draft £35bn budget for the year ahead, Mr Swinney told the Scottish parliament he had 'reluctantly' decided to cancel the rail link, partly to prevent drastic reductions in NHS spending in future years.

Financial Times