Analysing the Budget: Short-changed or delivering for Scotland?

The Budget committed £1 billion in extra money for Scotland, maintained the freeze on whisky and fuel duty, and saw a £150 million investment in the Tay City Region Deal. The Chancellor also committed to progress growth deals in Ayrshire, Moray and Borderlands. A good deal for Scotland, then? Aye, right! was the response from Holyrood.

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.

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 spirits duty will be a boost to Scotland’s whisky industry, maintaining the favourable tax climate for oil and gas will continue to help support the recovery of the sector, investing in fisheries technology will help support a key Scottish industry, and freezing beer duty will support large and small brewers across Scotland.

“I welcome the significant investment – £150 million – in the Tay Cities Deal. The Deal will drive economic growth in Tayside, boosting jobs and prosperity throughout the region. I also welcome the announcement that we are to open negotiations on a Moray Growth Deal, and we continue to make progress on Growth Deals for Borderlands and Ayrshire. In all, the UK Government is investing more than £1 billion in City Region Deals right across Scotland, helping to drive growth in Scotland’s economy.

“On top of our extensive investment 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.”

Delivering for the people of Scotland? Not so, said Holyrood Finance Secretary Derek Mackay, who said the UK Government’s budget has failed to deliver an end to austerity.

Speaking after the budget statement, Mr Mackay says the UK Budget does not deliver on the promises of a significant uplift in public spending, as Scotland’s resource block grant remains almost £2 billion lower in real terms in 2019/20, than it was in 2010/11.
Commenting following the UK Government’s budget Mr Mackay said the budget does not deliver what Scotland needs.
Mr Mackay said: “According to this budget, the Scottish Government’s resource block grant from the UK Government – the money we are able to invest in day to day public services – remains almost £2 billion lower next year compared with 2010-11. This budget falls a long way short of delivering for Scotland.
“The changes announced to universal credit do not go far enough.  They are just a drop in the ocean compared to the impact the roll-out of Universal Credit will have. I continue to call for the roll-out of Universal Credit to be halted – and halted straight away.
“Brexit is a serious threat to our economy and to household incomes. We continue to argue that the only deal that will deliver for Scotland is to remain in the Single Market and Customs Union.
“With the UK Government’s preferred approach to Brexit set to hit people’s incomes In Scotland by £1600 a head – the changes in this year’s budget do nothing to alleviate the impact Brexit will have.
“There was little in this budget to boost our public services.  The Scottish Government has already set out our plans to support the NHS in the years to come and the funding we have received as a result of health spending in England will go to our NHS in Scotland – but so far the UK Government has fallen at least £50m short of what was promised only 4 months ago.
“The reality of today’s budget is that Scotland continues to be hit by UK austerity and the decision to leave the EU. I have consistently argued for a better settlement for Scotland, and this budget does not reflect that.”
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davepickering

Edinburgh reporter and photographer