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Budget measures 'worth £350m' to Scotland Budget measures 'worth £350m' to Scotland
(35 minutes later)
The Scottish government will receive a £350m funding boost as a result of measures announced in his budget, the chancellor has said.The Scottish government will receive a £350m funding boost as a result of measures announced in his budget, the chancellor has said.
The additional Barnett Formula money will come from increased UK government spending on areas such as education.The additional Barnett Formula money will come from increased UK government spending on areas such as education.
Mr Hammond told the House of Commons that the additional funding demonstrated that "we are stronger together in this great United Kingdom".Mr Hammond told the House of Commons that the additional funding demonstrated that "we are stronger together in this great United Kingdom".
He also confirmed additional help for the North Sea oil and gas industry.He also confirmed additional help for the North Sea oil and gas industry.
The Treasury said the Scottish government would see its resource budget boosted by £260m over the next four years, and its capital budget by £90m. The Treasury said the Scottish government would see its resource budget boosted by £260m over the next three years, and its capital budget by £90m over the period to 2021.
It said the money would be in addition to the £800m of additional Barnett funds announced by the chancellor in last year's Autumn Statement.It said the money would be in addition to the £800m of additional Barnett funds announced by the chancellor in last year's Autumn Statement.
Ahead of the budget statement, the Scottish government said any additional funding for Scotland "must be seen against the context of the huge cuts we are already facing."Ahead of the budget statement, the Scottish government said any additional funding for Scotland "must be seen against the context of the huge cuts we are already facing."
Its finance secretary, Derek Mackay, said: "The cuts already planned by the UK government mean that by 2019-20, the Scottish government's discretionary budget will be £2.9bn (9.2%) lower in real terms than it was in 2010-11."Its finance secretary, Derek Mackay, said: "The cuts already planned by the UK government mean that by 2019-20, the Scottish government's discretionary budget will be £2.9bn (9.2%) lower in real terms than it was in 2010-11."
But Mr Hammond insisted his budget would "equip our economy and our people for the future - while dealing with the challenges we face as one nation".But Mr Hammond insisted his budget would "equip our economy and our people for the future - while dealing with the challenges we face as one nation".
He added: "Benefitting from £350m of extra investment, the Scottish government can take further steps to strengthen Scotland's economy and make sure that Scottish people, of all background and no matter where they live, feel the benefits of economic growth."He added: "Benefitting from £350m of extra investment, the Scottish government can take further steps to strengthen Scotland's economy and make sure that Scottish people, of all background and no matter where they live, feel the benefits of economic growth."
The chancellor confirmed that a panel of experts would be set up to examine how to boost sales of late life oil and gas fields - so they can keep producing for longer.The chancellor confirmed that a panel of experts would be set up to examine how to boost sales of late life oil and gas fields - so they can keep producing for longer.
Analysis by Philip Sim, BBC Scotland political reporterAnalysis by Philip Sim, BBC Scotland political reporter
Despite Philip Hammond's first budget statement being a rather technical one, the chancellor wasn't shy about trying to score some political points along the way.Despite Philip Hammond's first budget statement being a rather technical one, the chancellor wasn't shy about trying to score some political points along the way.
As he announced some funding for devolved administrations, Mr Hammond gestured theatrically towards the SNP benches, presumably looking for applause - to be met with stony silence, followed by jeers from Tory members.As he announced some funding for devolved administrations, Mr Hammond gestured theatrically towards the SNP benches, presumably looking for applause - to be met with stony silence, followed by jeers from Tory members.
He followed this up by saying that his budget means the UK is "stronger together" - doubling down on Theresa May's speech to the Conservative conference at the weekend.He followed this up by saying that his budget means the UK is "stronger together" - doubling down on Theresa May's speech to the Conservative conference at the weekend.
One of said SNP MPs, Ronnie Cowan, quickly posted on Twitter that the Barnett funds amounted to "an increase in pocket money".One of said SNP MPs, Ronnie Cowan, quickly posted on Twitter that the Barnett funds amounted to "an increase in pocket money".
And another, Joanna Cherry, voiced "pity" for "a chancellor who thinks a few million £s" will resolve the "constitutional crisis".And another, Joanna Cherry, voiced "pity" for "a chancellor who thinks a few million £s" will resolve the "constitutional crisis".
This is illustrative - even amid a rather wonkish budgetary discussion, constitutional matters are never very far from the surface.This is illustrative - even amid a rather wonkish budgetary discussion, constitutional matters are never very far from the surface.
Follow @BBCPhilipSim on TwitterFollow @BBCPhilipSim on Twitter
The Treasury also said "good progress" was being being made towards a City Deal with Edinburgh, while negotiations on a City Deal for Stirling have been opened.The Treasury also said "good progress" was being being made towards a City Deal with Edinburgh, while negotiations on a City Deal for Stirling have been opened.
And it said the UK government was also "looking forward" to considering proposals for a Tay Cities Deal in the near future.And it said the UK government was also "looking forward" to considering proposals for a Tay Cities Deal in the near future.
Mr Hammond opened his statement by saying that, although the UK economy "continued to confound the commentators with robust growth", the UK's deficit was still high, and productivity "stubbornly low".Mr Hammond opened his statement by saying that, although the UK economy "continued to confound the commentators with robust growth", the UK's deficit was still high, and productivity "stubbornly low".
He said the Office for Budget Responsibility had revised up its growth forecasts from 1.4% to 2% for 2017, and that borrowing would be £16.8bn lower than previously forecast.He said the Office for Budget Responsibility had revised up its growth forecasts from 1.4% to 2% for 2017, and that borrowing would be £16.8bn lower than previously forecast.
The chancellor also announced an increase in National Insurance rates for self-employed people, saying the disparity with the amount paid by employees "undermines the fairness of our tax system".The chancellor also announced an increase in National Insurance rates for self-employed people, saying the disparity with the amount paid by employees "undermines the fairness of our tax system".
Class 4 National Insurance contributions will go up to 10% from 9% and to 11% in April 2019, he told MPs.Class 4 National Insurance contributions will go up to 10% from 9% and to 11% in April 2019, he told MPs.