Budget To Bring Further Support

16th September 2012

Finance Secretary John Swinney is expected to set out a further phase of support in Scotland's strategy for economic recovery when he publishes the Scottish Government's draft Budget plans on Thursday.

The move follows the £485m of additional investment in the Scottish economy that has already been confirmed above and beyond the investment package announced in last year's Spending Review.

In February this year the Scottish Government confirmed a package of £380 million of capital spending over the period to 2014-15.

A further £105 million of investment directed at shovel ready projects was announced in June.

The additional spending confirmed since last year is supporting shovel ready transport, housing, health, digital and maintenance projects, aimed at creating jobs and stimulating growth.

The funding comes on top of a switch of over £700 million from resource budgets to support investment in job-creating capital projects and the £2.5 billion pipeline of infrastructure investment being funded through the Scottish Government Non-Profit Distributing model.

Scottish Ministers will again make the case this week to UK Ministers for further economic stimulus through investment in shovel ready projects when they and colleagues from the Devolved Administrations meet at the Joint Ministerial Committee on Wednesday.

The Scottish Government's commitment to invest in Scotland's infrastructure comes against a backdrop of a Westminster Spending Review which imposes an 11 per cent real terms cut to Scotland's discretionary spending powers and within that a cut of one third to its capital budget.

Speaking ahead of the Budget Mr Swinney said:"The Scottish Government is doing all that it can to stimulate growth, most recently announcing a £105 million package to boost the economy and construction and with an additional £485m of investment confirmed over the last year.

"However the challenge remains. Scotland's budget has been cut significantly by the UK Coalition Government in a failed attempt to reduce public sector borrowing. Changes to UK spending have made little difference, with a 33 per cent cut in Scotland's capital budget. The consequences of that miserable economic strategy can be seen in falling growth forecasts and the continued challenge of unemployment.

"While we are making progress there is much more to do. Households are still struggling and too many people are looking for work.

"We are investing as much as we can in infrastructure projects to support recovery, build the foundations for long-term growth and create and sustain the jobs that this country needs now.

"And our support for households with a council tax freeze that has put £479 into the pockets of the average band D household, support for those on low wages through the Scottish Living Wage and investment in young people through our Opportunities for All initiative and the Education Maintenance Allowance.

"This week I will set out the Scottish Government's proposed spending plans for 2013 - 14.

"I guarantee I will squeeze every penny out of the money we have available to us to boost the pace of recovery and to support the hard pressed households of Scotland."