The UK Government must invest in public services, support economic growth and take action on the cost of living, Finance Secretary Shona Robison has said.
Ahead of the UK Budget on Wednesday 26 November, Ms Robison is calling on the Chancellor to:
deliver more funding for Scotland’s public services, infrastructure, and cost of living support – including actions to lower household energy bills
ensure that any major taxation choices do not see Scotland losing out on vital funding
completely reform the Energy Profits Levy and replace it with a sustainable system, to support jobs and investment across Scotland’s energy sector
Finance Secretary Shona Robison said: “The UK Budget process has been chaotic and mired in damaging uncertainty. It is disappointing that neither the Prime Minister nor the Chancellor were able to meet with the First Minister in London this week.
“Given the limited time to consider the implications of any major policy changes between the UK Budget and the Scottish Budget on 13 January, this lack of engagement is a particular concern.
“Last year, the UK Government increased employer National Insurance contributions without any consultation, which led to a funding shortfall of around £400 million for public services in Scotland and acts as a tax on jobs. We cannot see a repeat this year.
“We need to see a change of course from the Chancellor – with investment in public services and infrastructure, which supports industry and jobs and delivers support on the cost of living challenges people across Scotland are facing.
“Energy bills in particular are a source of real worry for people this winter. While the UK Government promised to cut energy bills by £300, they have actually risen by almost £200 – so this Budget must provide some relief for households who are struggling.
“The UK Government must also listen to industry concerns around the Energy Profits Levy. This was always supposed to be a temporary measure and it is now affecting investment and jobs in Scotland.
“The UK Government needs to set out how a stable and long-term fiscal regime will be used to treat the offshore energy sector fairly, alongside other parts of the UK economy, and deliver business and investor certainty.
“Scotland must not be left as an afterthought yet again in the UK Budget.”
The 2026-27 Scottish Budget will be published by the Finance Secretary on 13 January.
The Chancellor visited Paisley yesterday to announce £66 million of investment in Scottish transport
Chancellor Rachel Reeves announces millions for West of Scotland transport links and extra funding to explore upgrades to the A75.
Investment follows the Industrial Strategy which boosted Advanced Manufacturing clusters and the Spending Review which delivered a record settlement for Scottish public services.
Funding is part of Government’s plan to invest in the economy right across the UK.
The investment will help workers access jobs in high growth sectors supercharged by the government’s modern Industrial Strategy and Spending Review.
The UK Government is boosting investment across Scotland through two investment zones and multiple industrial sites from the North East of Scotland Investment Zone to the Prestwick Aerospace Cluster.
This £66 million will work alongside these investments to fund three Scottish transport schemes and create direct links between towns and economic hubs in the West of Scotland.
Renfrewshire Council will get £38.7 million to link Paisley town centre with Advanced Manufacturing Innovation District Scotland (AMIDS) and Glasgow Airport. New walking, cycling, bus and car links will be built so local people can benefit from the growth of high value manufacturing in Renfrewshire.
Another £23.7 million will be given to North Ayrshire Council to upgrade the B714. This upgrade will see a much faster route between the Three Towns of Ardrossan, Saltcoats and Stevenston to Glasgow, and cut traffic in Kilwinning. The Chancellor prioritised finding this cash during last month’s Spending Review, which also saw billions invested in Scotland’s growth sectors.
Chancellor of the Exchequer, Rachel Reeves said: “We’re pledging billions to back Scottish jobs, industry and renewal – that’s why we’re investing in the major transport projects, including exploring upgrades to the A75, that local communities have been calling for.
“Whilst previous governments oversaw over a decade of decline of our transport infrastructure, we’re investing in Britain’s renewal. This £66 million investment is exactly what our Plan for Change is about, investing in what matters to you in the places that you live.”
Meanwhile, the Scottish Government will be given an extra £3.45 million to suggest upgrades to the A75 in Dumfries and Galloway. The key road, which links the Cairnryan port serving Northern Ireland with the rest of the UK, is vital to UK connectivity and growing the economy.
This new money comes on top of the up-to-£5 million announced at the Chancellor’s Autumn Budget 2024.
As part of a wider investment strategy in Scotland the Spending Review saw around £200 million committed to the Acorn Carbon Capture, Usage and Storage project, subject to business cases, and £8.3 billion confirmed for Great British Energy, strengthening Scotland’s position as the home of the UK’s clean energy revolution.
A multi-decade, multi-billion project to secure jobs at HM Naval Base Clyde was also kickstarted with an initial £250 million investment.
Whilst in Scotland the Chancellor will also visit the Edinburgh Supercomputer, which will receive up to £750 million in UK Government funding, later on Friday. The funding, announced during the Chancellor’s Spending Review will ensure that Scotland becomes home to the UK’s most powerful Supercomputer, supporting Scottish research and development, and industry.
The Spending Review delivered a record settlement for Scottish public services, with the Scottish Government’s largest settlement, in real terms, since devolution in 1998. Scottish Government’s settlement is growing in real terms between 2024-25 and 2028-29. This translates into an average of £50.9 billion per year between 2026-27 and 2028-29.
Scotland Secretary, Ian Murray, said:“This £66 million investment in Scotland’s roads demonstrates the UK Government’s commitment to improving infrastructure and driving economic growth in all parts of the UK as part of our Plan for Change.
“This investment will make a real difference to people’s daily lives and to the local economies of the South of Scotland, Ayrshire and Renfrewshire.
“New road links will connect Paisley town centre with Glasgow Airport and the new advanced manufacturing innovation district, to boost high value manufacturing in Renfrewshire.
“The upgrade to the B714 will speed up journeys between Glasgow and the three towns of Ardrossan, Saltcoats and Stevenston, as well as cutting traffic in Kilwinning. And the A75 is strategically important just not within but beyond Scotland. Its upgrading is long overdue. I am pleased that the UK Government has stepped up to fund the delivery of the A75 feasibility study in full.
“This investment is yet another example of how the UK Government is building the foundations for a stronger, more prosperous future that benefits communities right across Scotland.
As strategic roads in Scotland are the Scottish Government’s responsibility, any future upgrades to the A75 will be funded from the Scottish Government’s block grant.
The Ayrshire and Renfrewshire projects are part of a £378m UK-wide Levelling Up Fund cash boost, upgrading transport links across Britain, which were also announced yesterday.
Building work on the LUF projects will be able to start as final business cases are given the green light by the Department for Transport.
New state-of-the-art gigafactory ignites growth in industrial heartlands, supporting 1,000 jobs and powering up 100,000 electric vehicles a year
Chancellor visited Sunderland today following landmark economic deal with the US that saved thousands of auto jobs and slashed tariffs on car exports.
Latest action in the Government’s Plan for Change to strengthen our industrial heartlands, make Britain a clean energy superpower and put more money in people’s pockets through good jobs.
Working people will benefit from 1,000 jobs at a new state-of-the-art gigafactory in Sunderland in a £1 billion auto deal to accelerate the transition to electric vehicles and boost growth.
This investment is another boost for the British car industry after yesterday’s landmark economic deal with the United States saved thousands of jobs by slashing tariffs on British exports.
The new AESC gigafactory will manufacture batteries for electric vehicles, powering up to 100,000 EVs each year – a six-fold increase on the country’s current capacity – making the UK globally competitive selling more British EVs at home and abroad and helping to achieve our net zero target.
In the landmark transaction, the National Wealth Fund and UK Export Finance will provide financial guarantees which unlock £680 million in financing from banks including Standard Chartered, HSBC, SMBC Group, Societe Generale and BBVA. This will cover construction and operation of the new plant. The remaining £320 million has been secured through private financing in addition to new equity provided by AESC.
In addition to this £1 billion investment, the Government’s Automotive Transformation Fund is also investing £150 million in grant funding.
This is the Government’s Plan for Change in action, making us more competitive on the world stage, helping Britain on its way to becoming a clean energy superpower through innovation in the automotive sector, and delivering economic growth that puts more money in people’s pockets through high skilled jobs.
Chancellor of the Exchequer, Rachel Reeves, said: “We are going further and faster to boost our industries’ resilience and encourage their growth as part of our Plan for Change, and this investment follows hot on the heels of yesterday’s landmark economic deal with the US which will save thousands of jobs in the industry.
“This investment in Sunderland will not only further innovation and accelerate our move to more sustainable transport, but it will also deliver much-needed high quality, well-paid jobs to the North East, putting more money in people’s pockets.”
Business and Trade Secretary, Jonathan Reynolds, said: “We’re backing our world-class car industry, and this investment is yet another vote of confidence in the North East’s thriving auto manufacturing hub which will secure a thousand well-paid jobs and boost prosperity across the region.
“Our modern Industrial Strategy will drive this growth even further, powering our high-potential sectors like advanced manufacturing so we can deliver jobs and investment in every corner of the UK and make our Plan for Change a reality.”
The Chancellor visited AESC in Sunderland today [Friday 9 May] where she met staff and local leaders to discuss how the investment will bring jobs and prosperity to the North East, and how the landmark economic deal secured with the US will secure the industry for years to come.
The deal slashes car export tariffs from 27.5% to 10% and will apply to a quota of 100,000 UK cars – almost the total exported last year.
This will save some car companies hundreds of millions of pounds, making high skilled jobs in industrial heartlands like Sunderland more secure.
Shoichi Matsumoto, CEO of Japanese headquartered AESC, said: “This investment marks a key milestone in AESC’s ongoing efforts to support the UK’s path towards decarbonisation and the expansion of its EV market.
“Through close collaboration with strategic partners, we strive to accelerate this transition while creating high-quality local jobs and building resilient, sustainable supply chain.
“We are honoured to contribute to the development of low-carbon economy with our advanced battery technologies.”
John Flint, National Wealth Fund CEO, said: “AESC’s gigafactory will not only help to retool our car industry for net zero it will also support jobs, growth, and prosperity in the Northeast.
“This investment further demonstrates the significant role NWF is playing to crowd private capital into the industries and regions where its most needed, boosting government’s growth and clean energy missions.”
UKEF CEO, Tim Reid, said: “This hugely exciting project is a prime example of how export financing is a powerful tool for unlocking growth opportunities for British exporters and strengthening local economies.
“We’re proud to join forces with partners to back this pioneering gigafactory that will help cement the UK’s prowess as an EV battery-making force for years to come.”
The Prime Minister will intensify his efforts in pursuit of a just and lasting peace in Ukraine by convening international leaders at a summit in London today
Prime Minister Sir Keir Starmer will intensify his efforts in pursuit of a just and lasting peace in Ukraine by convening international leaders at a summit in London today.
The Prime Minister has this weekend reiterated his unwavering support for Ukraine and is determined to find a way forward that brings an end to Russia’s illegal war and guarantees Ukraine a lasting peace based on sovereignty and security.
The summit rounds off a week of intense diplomacy for the Prime Minister, which has seen him raise UK defence spending and travel to Washington D.C. for productive talks with President Trump in support of UK and European security. The Prime Minister spoke again with both President Trump and President Zelenskyy on Friday evening following the events of yesterday at the Presidents’ meeting in Washington D.C.
The Prime Minister will welcome Italy’s Prime Minister Giorgia Meloni to Downing Street this morning, before being joined at the summit in central London by the leaders of Ukraine, France, Germany, Denmark, Italy, Netherlands, Norway, Poland, Spain, Canada, Finland, Sweden, Czechia and Romania. The Turkish Foreign Minister, NATO Secretary General and the Presidents of the European Commission and European Council will also attend.
The Prime Minister has been clear that there can be no negotiations about Ukraine without Ukraine, a determination he reiterated when he warmly welcomed President Zelenskyy to Downing Street on Saturday evening ahead of the summit.
Discussions at the summit will focus on:
Strengthening Ukraine’s position now – including ongoing military support and increased economic pressure on Russia.
The need for a strong lasting deal that delivers a permanent peace in Ukraine and ensures that Ukraine is able to deter and defend against future Russian attack.
Next steps on planning for strong security guarantees.
Following the announcement earlier this week that the UK will spend 2.5% of its GDP on defence by 2027, the Prime Minister will be clear on the need for Europe to play its part on defence and step up for the good of collective security.
The UK has already been clear it is willing to support Ukraine’s future security with troops on the ground.
Prime Minister Keir Starmer said: “Three years on from Russia’s brutal invasion of Ukraine, we are at a turning point.
“Today I will reaffirm my unwavering support for Ukraine and double down on my commitment to provide capacity, training and aid to Ukraine, putting it in the strongest possible position.
“In partnership with our allies, we must intensify our preparations for the European element of security guarantees, alongside continued discussions with the United States.
“We have an opportunity to come together to ensure a just and lasting peace in Ukraine that secures their sovereignty and security.
“Now is the time for us to unite in order to guarantee the best outcome for Ukraine, protect European security, and secure our collective future.”
UK reinforces support for Ukraine with £2.26 billion loan
The £2.26 billion loan will bolster Ukrainian military capability, and will be paid back using profits generated on sanctioned Russian sovereign assets.
Chancellor Rachel Reeves and Ukrainian Finance Minister Sergii Marchenko signed the formal loan agreement yesterday (Saturday 1 March), with the first tranche of funding expected to reach Ukraine later next week.
The loan demonstrates the UK’s commitment to Ukrainian defence. A strong Ukraine is vital to UK national security – the first duty of any government and central to the Plan for Change.
Chancellor Rachel Reeves and Ukraine’s Finance Minister Sergii Marchenko have signed the UK-Ukraine Bilateral agreement.
This agreement will deliver £2.26 billion in funding to Ukraine, which will be paid back using the extraordinary profits generated on sanctioned Russian sovereign assets held in the EU.
This is the UK’s contribution to the G7 Extraordinary Revenue Acceleration (ERA) Loans to Ukraine scheme, through which G7 countries will collectively provide $50 billion to support Ukraine.
Chancellor of the Exchequer Rachel Reeves said:“A safe and secure Ukraine is a safe and secure United Kingdom. This funding will bolster Ukraine’s armed forces and will put Ukraine in the strongest possible position at a critical juncture in the war.
“It comes as we have increased our defence spending to 2.5% of GDP, which will deliver the stability required to keep us safe and underpin economic growth.”
The loan will be fully earmarked for military procurement to bolster Ukraine’s defences, with the first tranche of funding expected to be disbursed to Ukraine next week.
Russia’s obligation under international law to pay for the damage it has caused to Ukraine is clear and this G7 agreement, backed by the profits generated on sanctioned Russian sovereign assets, is an important step to ensuring this happens.
The funding will be delivered in three equal annual payments of £752m.
The announcement of the loan agreement is on top of the £3 billion a year commitment by the UK to provide military aid for Ukraine. The Prime Minister has been clear that a strong Ukraine is vital to UK national security.
This loan follows the announcement by the Prime Minister committing the Government to increase UK defence spending to 2.5% of GDP by 2027, with an ambition to spend 3% of GDP on defence in the next parliament as economic and fiscal conditions allow.
This represents the biggest sustained increase in defence spending since the Cold War, safeguarding our collective security and funding the capabilities, technology and industrial capacity needed to keep the UK and our allies safe for generations to come.
As set out in the Plan for Change, national security is the first duty of the government, and investment in defence will protect UK citizens from threats at home while also creating a secure and stable environment for economic growth.
The UK Autumn Budget should focus on “investment and opportunity”, with more funding for public services, infrastructure and measures to eradicate child poverty, says Scotland’s Finance Secretary Shona Robison.
The Finance Secretary pledged to work with the UK Government and devolved administrations to ensure the Autumn Budget on October 30 “works for all four nations and delivers the change that people need”.
She called for the Chancellor to:
change the rules around borrowing to allow for greater investment in public infrastructure and services
reverse the forecast cut to capital funding, enabling the Scottish Government to invest more in hospitals, schools and transport
abolish the two child limit
deliver an Essentials Guarantee providing basic necessities for those who need them most
take greater steps towards delivering net zero, including by reforming motoring taxation
ensure any changes to tax take account of Scotland’s distinct and devolved tax system
https://twitter.com/i/status/1838594647918084161
Ms Robison said: “When I met with the Chancellor last month, we were in full agreement that we must put people first in all that we do. This principle must be at the heart of the decisions at the Autumn Budget.
“I want to work with the Chancellor, and the governments in Wales and Northern Ireland, to ensure that we have a Budget that works for all four nations and delivers the change that people need.
“It does not need to be another Budget of challenge and constraint. Instead it can be a Budget about investment and opportunity.
“We’re calling for measures to tackle child poverty and grow our economy. We’d like to see new rules around borrowing that support investment in public services. We want the UK Government to work hand in hand with the devolved administrations to provide the funding to deliver on our priorities.
“These are the choices I encourage the Chancellor to make.”
A Freedom of Information request made by financial journalist, broadcaster, and speaker PAUL LEWIS has revealed the likely impact of cuts to the Winter Fuel Payment.
Mr Lewis says the DWP response (below) that shows the Labour government knew:
* 1.6m disabled pensioners would lose winter fuel payment
* 780,000 of the poorest pensioners who were entitled still would not get it – so ‘protecting the poorest’ was a lie.
