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Autumn statement: Scottish budget to receive extra £800m | Autumn statement: Scottish budget to receive extra £800m |
(about 2 hours later) | |
Scotland's capital budget is to be given an extra £800m over the next five years as part of an investment package, the UK Chancellor has said. | Scotland's capital budget is to be given an extra £800m over the next five years as part of an investment package, the UK Chancellor has said. |
Philip Hammond made the announcement as he unveiled his Autumn Statement in the House of Commons. | Philip Hammond made the announcement as he unveiled his Autumn Statement in the House of Commons. |
The money is the result of increased spending on infrastructure in the rest of the UK. | The money is the result of increased spending on infrastructure in the rest of the UK. |
Mr Hammond said the additional funds would give Holyrood greater ability to boost productivity and promote growth. | Mr Hammond said the additional funds would give Holyrood greater ability to boost productivity and promote growth. |
But the Scottish government's economy secretary, Keith Brown, tweeted that the statement was "broadly a Tory continuation of Labour's crass mismanagement of the economy". | But the Scottish government's economy secretary, Keith Brown, tweeted that the statement was "broadly a Tory continuation of Labour's crass mismanagement of the economy". |
The Scottish government's overall budget is expected to fall in real terms regardless of the increase in funding for infrastructure projects. | The Scottish government's overall budget is expected to fall in real terms regardless of the increase in funding for infrastructure projects. |
Mr Hammond announced a new National Productivity Investment Fund of £23bn, which he said would be spent on innovation and infrastructure over next five years. | Mr Hammond announced a new National Productivity Investment Fund of £23bn, which he said would be spent on innovation and infrastructure over next five years. |
The Barnett Formula means that the Scottish government will be allocated £800m over the period until 2020-21, the chancellor said. | |
Mr Hammond added: "Economically productive infrastructure directly benefits businesses. But families, too, rely on roads, rail, telecoms - and, especially housing." | Mr Hammond added: "Economically productive infrastructure directly benefits businesses. But families, too, rely on roads, rail, telecoms - and, especially housing." |
It will be up to the Scottish government to decide how to spend the increase in the capital budget. | It will be up to the Scottish government to decide how to spend the increase in the capital budget. |
An increase in capital spending had been a key demand of the Scottish government ahead of the chancellor's statement. | An increase in capital spending had been a key demand of the Scottish government ahead of the chancellor's statement. |
City Deals | City Deals |
Scottish Secretary David Mundell said it was now for the Scottish government to "step up" and ensure the money "makes a real difference to productivity, jobs and growth in Scotland". | Scottish Secretary David Mundell said it was now for the Scottish government to "step up" and ensure the money "makes a real difference to productivity, jobs and growth in Scotland". |
He added: "The UK government's decisions today mean a secure economy based on the broad shoulders of the UK, more funding and more powers for Scotland." | He added: "The UK government's decisions today mean a secure economy based on the broad shoulders of the UK, more funding and more powers for Scotland." |
But the SNP's economic spokesman at Westminster, Stewart Hosie, said Mr Hammond had failed to address the Brexit "elephant in the room" in his statement. | But the SNP's economic spokesman at Westminster, Stewart Hosie, said Mr Hammond had failed to address the Brexit "elephant in the room" in his statement. |
Mr Hosie said the chancellor had only made a "glib reference" to the UK's decision to leave the EU and accused him of using a tactic of "deflection" to avoid the topic. | Mr Hosie said the chancellor had only made a "glib reference" to the UK's decision to leave the EU and accused him of using a tactic of "deflection" to avoid the topic. |
He also said positive measures outlined in the spending blueprint would just make a "brutal regime slightly less brutal". | He also said positive measures outlined in the spending blueprint would just make a "brutal regime slightly less brutal". |
Scottish Labour leader Kezia Dugdale said the Autumn Statement was "more of the same old Tory mantra - cut, cut and cut again". | Scottish Labour leader Kezia Dugdale said the Autumn Statement was "more of the same old Tory mantra - cut, cut and cut again". |
Elsewhere in his statement, the chancellor confirmed talks would begin on Stirling's bid for a City Deal, which also includes Clackmannanshire. | Elsewhere in his statement, the chancellor confirmed talks would begin on Stirling's bid for a City Deal, which also includes Clackmannanshire. |
And he indicated that a City Deal for Edinburgh would be agreed, and that proposals from the "Tay Cities" of Perth and Dundee would be considered. | And he indicated that a City Deal for Edinburgh would be agreed, and that proposals from the "Tay Cities" of Perth and Dundee would be considered. |
Mr Hammond said this meant every city in Scotland would be on course for a City Deal, which gives local areas greater powers and freedoms to help support economic growth, create jobs or invest in local projects. | Mr Hammond said this meant every city in Scotland would be on course for a City Deal, which gives local areas greater powers and freedoms to help support economic growth, create jobs or invest in local projects. |
Analysis by Brian Taylor, BBC Scotland political editor | |
Scottish ministers had been privately anxious that the entire revenue settlement for the year ahead, 2017/18, might be unpicked, with adverse consequences. | |
That has not happened - and there will be a degree of relief at Holyrood, albeit the spending constraints remain in place. | |
Then there is the extra money for capital investment as a Barnett consequential of the spending south of the border. It adds up to £800m - and, when announced, Tory backbenchers joined in a panto-style vocal challenge to the SNP benches. | |
Rejoice, they appeared to be shouting, rejoice. | |
To be clear, the capital spending allocated to the Scottish government will be welcomed by ministers. However, they note that it is spread over four years, from the current 2016/17. | |
They argue further that, taking all the figures into account, there remains a cut of about 8% in capital spending in real terms over the extended period from the Conservatives first entering Downing Street in 2010. | |
Read more from Brian | |
Meanwhile, Mr Hammond said growth next year will be considerably slower than was expected before the vote to leave the European Union, according to the Office for Budget Responsibility (OBR). | Meanwhile, Mr Hammond said growth next year will be considerably slower than was expected before the vote to leave the European Union, according to the Office for Budget Responsibility (OBR). |
The OBR expects the economy to grow by 1.4% in 2017, down from the 2.2% it predicted in March. | The OBR expects the economy to grow by 1.4% in 2017, down from the 2.2% it predicted in March. |
The growth forecast for this year has been raised slightly to 2.1% from 2.0%. | The growth forecast for this year has been raised slightly to 2.1% from 2.0%. |
But it expects growth to be 2.4 percentage points slower in the next five years as a result of the Brexit vote. | But it expects growth to be 2.4 percentage points slower in the next five years as a result of the Brexit vote. |
Mr Hammond stressed that the forecast for 2017 was still equal to the International Monetary Fund's prediction for the German economy, and ahead of its forecast for France. | Mr Hammond stressed that the forecast for 2017 was still equal to the International Monetary Fund's prediction for the German economy, and ahead of its forecast for France. |
Other measures from Mr Hammond's statement which will affect Scotland include; | Other measures from Mr Hammond's statement which will affect Scotland include; |