FM and Cosla President Write to Councils About Capital

22nd September 2012

First Minister Alex Salmond and Cosla President David O'Neill are together asking Scotland's councils to use capital investment to promote economic recovery and to protect and create jobs.

Mr Salmond and Mr O'Neill have written asking local authorities to review whether they have any further 'shovel-ready' construction projects that could begin at short notice - if the UK government were to release funds.

Earlier this week the First Minister joined the leaders of the other devolved administrations in calling jointly on the UK government to unlock funds for capital investment to boost the economy.

Writing together to all 32 of Scotland's council leaders as the Scottish Government set out its draft budget, the two leaders said:

"In addition to protecting jobs and output, capital investment has long-term benefits, including the creation of assets - such as public infrastructure - and can help retain vital skills and activity in key sectors such as construction.

"We understand that Councils will be exercising their ability to borrow sensibly now at current low interest rates, to maximise capital investment at a time when it is particularly needed. The question is whether more can be done and whether there is anything that can be done nationally to support you in making optimum use of your borrowing powers.

"Additionally for some time, as you will be aware, the Scottish Government has been proposing to the UK Government that Scotland would benefit from additional spend on capital projects that are currently on hold from lack of available funds.

"There is potential that either additional or accelerated capital funding will become available through Budget Consequentials at the time of the UK Autumn Budget, and we would want this to be used wherever its impact on the economy will be maximised, whether through Councils or Scottish Government.

"We would therefore strongly encourage you to review now whether you have any 'shovel ready' projects that could be progressed quickly in your Council area, in the event that further funding becomes available at fairly short notice."