The UK Government is offering a £1bn lifeline to help the Scottish Government build the new Forth bridge.

Yesterday Scottish Secretary Jim Murphy hosted talks in London with Scottish Finance Secretary John Swinney and the Chief Secretary to the Treasury, Yvette Cooper aimed at finding a way forward over the £2bn Forth road bridge funding dispute.

Mr Murphy said "real progress" had been made on the issue.

Plans for the new bridge were announced by the Scottish Government last year however Westminster rejected the SNP's proposal to borrow money from future budgets and pay it back over 20 years.

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The UK Government spoke of the idea of advancing cash from a budget that doesn't exist as "impossible".

Speaking after the meeting yesterday Mr Murphy said: "I was pleased I could host today's talks, which have produced a £1bn lifeline for the new Forth crossing.

"Today was an example of grown-up politics achieving grown-up results and the people of Scotland will welcome the sight of their two governments working together for the common good.

"The UK Government put a £1bn offer on the table which was taken seriously by John Swinney.

"I welcome the approach he took to our discussions and the manner in which the UK Government's efforts to find a way through the issue was welcomed."

As a compromise the UK Government offered to allow Holyrood ministers to keep savings made over the next three years to build up a cash reserve to help pay for the bridge.

However sources close to Mr Swinney said this was "unrealistic".

(GK/JM)