Underspend Should Generate Growth
8th July 2012
UK Government underspend of £6.7 billion last year should be used to grow the economy, the Infrastructure and Capital Investment Secretary said today.
New statistics published by HM Treasury show that UK Government departmental spending was £6.7 billion lower than planned in the year to March.
Infrastructure Secretary Alex Neil called for some of the cash to be used to give the green light to infrastructure projects in Scotland which are ready for construction and which would create jobs and growth.
The Scottish Government has provided Westminster with a list of projects that are "shovel ready" and could support around 1,400 jobs across the Scottish economy with every additional £100 million of capital spending.
Mr Neil's call follows a £105 million package of economic stimulus recently outlined by Scottish Government Finance Secretary John Swinney.
Mr Neil said:"The Scottish Government has repeatedly called on the UK Government to provide resources for capital investment to support economic recovery. We have always been clear that one of the primary ways to do this is by investing in our infrastructure.
"At the request of the Prime Minister we provided him with a list of 36 projects ready for construction in March. Despite repeated requests, we have yet to receive any funding.
"The Prime Minister told the First Minister that he accepts the principle of bringing forward capital investment but that there are no suitable "shovel ready" projects in England which could receive funding to begin in 2012 or 2013. This is not the case in Scotland.
"We have done what we can within our powers to fund shovel ready projects and indeed, we have funded some of the shovel ready project list provided from within our own resources, however there remains more we could do if additional funding is provided.
"Some of the newly revealed £6.7 billion UK underspend would benefit communities all over Scotland and generate significant employment.
"This Government has already demonstrated that where we have fiscal flexibility, we will use our resources to boost recovery.
"This again highlights the limitations of the current constitutional arrangements, in particular our inability to borrow. Work is delayed while we await the green light from Westminster, which is completely unacceptable and is holding us back."
***Shovel Ready Projects***
Infrastructure projects worth more than £300 million could get underway now if the UK Government gives Scotland the green light, Alex Neil said today.
The Cabinet Secretary for Infrastructure and Capital Investment was speaking as a list of 36 projects that are "shovel ready" was provided to Westminster by the Scottish Government.
If these go ahead now, they could provide a vital support to employment with every additional £100 million of capital spending estimated to support around 1,400 jobs across the Scottish economy.
All of these projects are close to or already have completed the planning and procurement process and are ready for construction to get underway.
However, with UK Government cuts of 32 per cent in Scotland's capital budget having a severe effect, funding for them is not yet available.
As a result the Scottish Government is asking the UK Government to allow Scotland to bring forward capital funding from future years, to allow construction to get underway straight away.
The list of projects, which was submitted last week, includes:
* Work on Ullapool Pier, worth £4m
* £13m for University of Glasgow - Centre for Virology Research
* Work on Inverness Campus, worth £6m
* £37m for Clyde Gateway developments at Bridgeton Cross, Dalmarnock Cross, Rutherglen and Shawfield.
Mr Neil said:"The Scottish Government has always been clear that investing in our infrastructure is one of the primary ways to create jobs and stimulate growth in our economy.
"That is why Westminster cuts in our capital budget of 32 per cent are both wrong and damaging.
"But we are not simply accepting these cuts. Instead we are acting to maintain investment by switching revenue spending to capital funding, and bringing forward a £2.5 billion pipeline of projects to be delivered through the non-profit distributing model. This means Scottish Government supported capital spending will be 25 per cent higher by the end of the spending review.
"But the cuts we are having to absorb mean that certain projects have not been delivered as quickly as we would like.
"At a recent meeting the Prime Minister suggested to the First Minister that he accepted the principle of bringing forward capital investment but explained there are not suitable "shovel ready" projects in England which could receive funding to begin in 2012 or 2013. That is not the case in Scotland, and the First Minister made that clear, and suggested supplying a list highlighting where opportunities exist.
"We have done that, showing there are valuable projects, that will boost the economy and provide work, right across Scotland, that are ripe for investment now.
"If these projects got underway this year, rather than being delayed, they would generate significant employment impacts that would be vital as we continue to do all we can to tackle unemployment. For example, it is estimated that each additional £100 million of capital spending supports 1,400 in the Scottish economy.
"The Scottish Government will go on doing what we can, but we need the UK Government to allow us to bring forward capital spending to get the diggers on the ground and these projects built as soon as possible.
"What this highlights is the limitations of the current constitutional arrangements, in particular our inability to borrow. That means work is delayed while we await the green light from Westminster, which is completely unacceptable and is holding us back."
Full list of projects, which was submitted to the UK Government on March 2nd:
Ullapool Pier - Passenger access system, traffic management, new berthing dolphin and replacement linkspan, £4m
Gourock-Dunoon Pontoons £2m
Kennacraig Phase 2, £4m
A96 Threapland, £6m
A68 Pathhead to Tynehead Junction, £6m
A95 Lackgie, £4m
A702 Candymill Bend and Edmonstone Brae, £4m
A737 Head Street Roundabout, £1.5m
A876 Kincardine Bridge Refurbishment, £14m
A75 Hardgrove to Kinmount, £10m
M8 M73 M74 Motorway Improvements: Advance Public Utilities, £37.8m
Health Maintenance to ensure assets are safe, effective and person centred, £50m
Accelerating Schools for the Future - worth £30.8m
University projects worth £35m including:
University of Glasgow - Centre for Virology Research
University of Dundee - Phases 2 and 3 - refurbishment of Duncan of Jordanstone
University of Abertay / Dundee College - Dundee Academy of Sport
University of Edinburgh - Centre for Humanities and Social Sciences
Dundee Central Waterfront, £4.5m
Fife Energy Park - Site Development, £3.5m
ITREZ Technology Innovation Centre, £4m
ATOS Building - Forress Enterprise Park, £3m
Inverness Campus, £6m
Forres Enterprise Park - Extension of Roads, £2m
Forres Enterprise Park - Provide 2 Units, £3m
European Marine Science Park - Ground works, £3.5m
Creative Clyde, £1.7m
National Renewable Infrastructure Plan - Hunterston Quay Upgrade, £2m
Priority investments within Local Authority Strategic Housing Investment Plans £15m
Plans
Clyde Gateway developments at Bridgeton Cross, Dalmarnock Cross, Rutherglen and Shawfield, £37m
Ayr Gaiety Theatre regeneration, £1m
National Records of Scotland - Thomas Thomson House - urgent roof repairs, £1.5m
Historic Scotland - Abbotsford House - restoration to bring into public use ,£0.7m
Historic Scotland - Lews Castle development, £1m
Forestry Commission Scotland - upgrade of visitor facilities at David Marshall Lodge,
Aberfoyle and Queen's View, Perthshire, £1m
National Parks - visitor facility improvements within the National Parks, £1m
Royal Botanic Garden, Edinburgh - commence replacement of the Garden's ageing glasshouses, £1.5m
TOTAL £302m
27/06/2012
Scottish Government Announces Over £100m To Stimulate Economic Growth
A £105 million package of economic stimulus which, this year, will maximise opportunities to create jobs and growth, was announced today by Finance Secretary John Swinney.
Mr Swinney outlined proposals to support new investment and accelerate projects from future years to boost the economy.
The Scottish Government has repeatedly called on the UK Government to provide resources for capital investment in order to support economic recovery. Today's announcement demonstrates that where the Scottish Government has fiscal flexibility, it will use its resources in order to boost recovery.
Each of these projects can be taken forward quickly and will deliver the maximum economic impact from the funds available. They cover key policy priorities for the Scottish Government, including renewables, tourism, transport and housing.
They include:
£22 million of investment in renewables and low carbon initiatives;
Accelerated investment of £15 million and additional investment of £20 million in housing ;
Accelerated investment of £15 million to expand our existing programme of maintenance of our hospitals;
Investment in colleges at Inverness Campus;
Taking forward a number of additional transport projects including funding for green buses; the causeway at Kennacraig and improvements to the A75 Hardgrove to Kinmount route;
Investment in additional regeneration and enterprise projects - in Rutherglen, Bridgeton, Forres, and Inverclyde;
Additional investment in visitor facilities within our national parks and Forestry Commission estate; and
Further investment in the maintenance of our cultural assets - through Historic Scotland, Creative Scotland, National Records of Scotland, National Library of Scotland and National Galleries of Scotland
Cabinet Secretary for Finance, Employment and Sustainable Economic Growth John Swinney said:
"The Scottish Government is maximising the value of every public pound available as we take forward our programmes to support economic recovery and deliver high-quality, efficient public services.
"Our careful management of Scotland's finances means that we are able to increase levels of capital investment now to boost our future prosperity.
"While these projects will support and stimulate economic growth, they will also deliver on a range of wider objectives such as environmental and health improvement, housing, greener transport, maintenance of our health estate, and culture and tourism. We are also focusing our support on local economies and investment in key geographical areas.
"By accelerating this programme of capital investment we are taking action where the Westminster Government has failed to do so. As I have said repeatedly, the UK's austerity approach is failing to produce growth in the UK economy and we are doing everything possible, within our current powers, to make sure that that this doesn't damage our efforts to build sustainable economic growth for Scotland."
