Increase capital funding in spring Budget, Robison urges Chancellor
The Scottish Government has been criticised for a more than £200 million cut to the housing budget.
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Your support makes all the difference.Scotland’s Deputy First Minister has urged the Chancellor to increase funding for capital projects in his spring Budget.
With the fiscal event due on Wednesday, Shona Robison has again pushed for an increase in funding to the devolved administrations through Barnett consequentials.
The Deputy First Minister – who also controls the purse strings in Scotland – has been criticised for a more than £200 million cut in funding for housing in the recently-passed Scottish budget.
The Chancellor must not repeat the mistakes of the autumn statement – where £27 billion of fiscal headroom was used to fund tax cuts
But she said in January that housing would be the “number one priority” if extra funding is provided from Westminster following the Budget.
Speaking ahead of the spring Budget, the Deputy First Minister said: “Today the Chancellor must not repeat the mistakes of the autumn statement – where £27 billion of fiscal headroom was used to fund tax cuts – and instead prioritise the investment needed for Scotland’s people and public services.
“Key to that is funding for infrastructure. We’ve already committed £6.3 billion of capital spending as part of the 2024-25 Scottish Budget, underpinning high-quality public services, creating jobs and supporting the economy.
“However, we are expecting a real-terms cut to our UK capital funding of almost 10% over five years, totalling around £1.6 billion – enough to build a large hospital.
“Likewise, our financial transactions budget – key to delivering affordable housing – has been cut by 62%.
“With the UK now in recession, capital investment to kick-start economic activity is needed now more than ever. Infrastructure is vital for jobs, economic growth and the path to net zero.
“That’s why I am urging the Chancellor to deliver the capital funding Scotland needs.”
A spokesman for the UK Government said: “The Scottish Government is currently receiving a record £41 billion per year funding settlement from the UK Government – the largest in the history of devolution and one that was further topped up by decisions taken at Autumn Statement.
Ordinary people didn’t cause this crisis, but they are being made to pay for it under the SNP and the Tories
“It can also borrow up to £450 million for capital investment on top of this record funding, and the UK Government has agreed to inflation-proof that limit going forward.”
Shadow Scottish Secretary Ian Murray, meanwhile, said Scots are facing the highest tax burden in decades “because of the mess the Tories and the SNP have made of public finances”.
“Ordinary people didn’t cause this crisis, but they are being made to pay for it under the SNP and the Tories.
“Now, Scots face the highest tax burden anywhere in the UK, and the slowest growth in disposable income, while at the same time the SNP and Tories oppose a windfall tax on the oil and gas giants who are raking in billions of pounds of profits every month.”