£1 Billion Extra Funding For Scotland In UK Government Budge

29th October 2018

Scotland will benefit from nearly £1 billion in additional funding for the Scottish Government, as well as £150 million for a Tay Cities Deal and a freeze in Spirits Duty, the Chancellor has announced in the Budget today.

This year's Budget is a result of the UK government's balanced approach to the country's finances, keeping taxes low and debt falling while increasing the Scottish Government’s spending power.

Today’s announcements for Scotland include:

An extra £950 million for the Scottish Government, meaning its budget will have grown in real terms to £32 billion by 2020.

£150 million for a Tay Cities Deal to support growth and create new jobs.

A boost to the Scotch Whisky industry, which already accounts for 20% of UK food and drink exports, as Spirits Duty is frozen for the second Budget in a row. This means the price of a typical bottle is 30p lower than if it had risen by inflation.

A UK-wide £10 million Fisheries Technology Fund to help transform the industry and make fishermen in Scotland world leaders in safe, sustainable and productive fishing.

Opening formal negotiations for a Moray Growth Deal and progressing talks for Ayrshire and Borderlands Growth Deals.

Continuing support for the oil and gas sector, through maintaining our globally competitive position and further strengthening Scotland’s role as a world leader in this area.

Appointing a dedicated manager from the British Business Bank in Scotland, for the first time, to help to reduce geographical imbalances in small businesses’ access to finance.

The Chancellor of the Exchequer, Philip Hammond, said:

"My Budget sends a clear message to the people of Scotland - your hard work is paying off.

"Thanks to the UK government’s careful stewardship of the economy, the public finances are in a much stronger position and national debt is falling.

"This means we have more money to invest in Scotland’s future - including a £950 million funding boost, freezing Spirits Duty to support the Scotch Whisky industry and £150 million for a Tay Cities Deal."

Secretary of State for Scotland David Mundell said:“Today’s Budget is great news for people in Scotland.

“The Chancellor’s decisions mean there will be an extra £1 billion to invest in public services in Scotland. I urge the Scottish Government to use this extra money to support the NHS in Scotland, fix the roads, boost Scotland’s economy and reinvigorate Scotland’s high streets.

“The freeze on beer and spirits, support for oil and gas, cash for fisheries technology and a £150m investment in the Tay Cities Deal will all drive growth in Scotland’s economy.

“Individuals up and down Scotland will benefit from the ongoing freeze on fuel duty and the increase in personal allowance. Today’s Budget demonstrates clearly how the UK Government is delivering for people in Scotland."

The Chancellor set out his Budget against a backdrop of positive economic news across Scotland. Since 2010, 198,000 more people in Scotland are in work and 61,200 new businesses have been set up.

The people of Scotland will also benefit from measures to tackle the cost of living:

Fuel duty has been frozen for a ninth successive year. As a result of these nine years of freezes, by April 2020, the average car driver will have saved a cumulative £1,000 compared with the pre-2010 escalator.

The National Living Wage will also rise next year to £8.21 per hour, with the current rate benefitting around 117,000 workers in Scotland. An additional 31,000 people will also benefit from changes to the Minimum Wage, which will also increase to £7.70 per hour.