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Budget measures 'worth £350m' to Scotland Budget measures 'worth £350m' to Scotland
(about 1 hour 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 three years, and its capital budget by £90m over the period to 2021.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.
The Scottish government said the "limited increases" in Barnett consequentials meant the Scottish budget was still facing cuts of £2.9bn over the next decade.The Scottish government said the "limited increases" in Barnett consequentials meant the Scottish budget was still facing cuts of £2.9bn over the next decade.
Its finance secretary, Derek Mackay, said: "The real elephant in the room in this budget was Brexit. There was no mention of the UK government's plans to protect and grow the UK economy as the prime minister gets ready to trigger Article 50.Its finance secretary, Derek Mackay, said: "The real elephant in the room in this budget was Brexit. There was no mention of the UK government's plans to protect and grow the UK economy as the prime minister gets ready to trigger Article 50.
"This is simply not acceptable. Brexit is a real threat to people across Scotland in so many ways. The chancellor must tell us his plans.""This is simply not acceptable. Brexit is a real threat to people across Scotland in so many ways. The chancellor must tell us his plans."
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 Barnett formula is used to calculate public expenditure allocated to the devolved nations.The Barnett formula is used to calculate public expenditure allocated to the devolved nations.
The additional money will largely be the result of increased UK government spending in social care, health and education in England - but the Scottish government will be free to spend it however it wants.The additional money will largely be the result of increased UK government spending in social care, health and education in England - but the Scottish government will be free to spend it however it wants.
The chancellor also 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 also 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 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 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 budget 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 budget 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 also 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 also 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.
Scottish Labour leader Kezia Dugdale said: "This was billed as a budget that would be upbeat but what we got instead was an insight into the devastating impact a chaotic Tory Brexit will have on families across the UK.
"The Chancellor could have brought an end to seven years of damaging Tory austerity but instead he doubled down by imposing cuts to public services and welfare".
Scottish Greens co-convener Patrick Harvie said: "The £350m in capital funds coming to the Scottish government is a drop in the ocean after years of cuts, but it's vital that Scottish ministers use this cash to invest in the kind of physical and social infrastructure we really need."