Austerity is not at an end
The details of the chancellor’s UK budget are now known and contrary to the fanfare at the recent Conservative party conference, austerity has not been brought to an end.
That is not just my opinion, it is reflected in the widespread economic commentary that demonstrates the point.
We have had to endure a very sustained period of reductions in public expenditure and the time for investment is long overdue.
The announcements of new money for the NHS is welcome but the economic analysis shows quite clearly this investment will be at the expense of other areas of public spending.
I did all that I could as finance secretary in Scotland for nine years to shield the country from the harsh effects of austerity.
By investing in capital expenditure projects I was able to sustain local economies and employment.
And despite the effects of austerity I was able to keep unemployment at a much lower level than might have been anticipated.
The budget represents a missed opportunity to increase public expenditure.
That was the central demand of our new finance secretary Derek Mackay to the chancellor in advance of the budget.
My finance colleagues in the Scottish Government have already taken some steps to help the economy.
There is going to be a continuation of the cap on increases in rates for hotels which will be greeted with a great deal of relief in this local tourism economy.
There has also been a very welcome commitment given by the Scottish Government to fund the Tay Cities Deal up to a level of £200 million.
I am delighted such a firm commitment has been given to a range of projects that come under the umbrella of a cities deal but which will have an impact throughout Dundee, Perthshire and Angus.
It was another unfortunate element of the budget that the UK Government confirmed it did not intend to match the £200 million commitment to the Tay Cities Deal given by the Scottish Government. This is a real breach of faith. These deals were supposed to be funded 50:50 by each government and that commitment has not been forthcoming.
The measures to support the economy are important at such a sensitive and critical time.
It is becoming increasingly clear that a no deal Brexit is a real possibility.
Coupled to the rejection of any meaningful approach to enable much needed workers to travel to this area to work in the agriculture sector, and the contentious way in which the Conservative secretary of state for Scotland dismissed the concerns of farmers on this issue, it is ever more important that we take the necessary measures to invest in the economy.
We do face very serious uncertainties in the future and the Scottish Government will now focus on our own budget to continue our efforts to invest in a strong Scottish economy.
We now have growth that is higher in Scotland than in the UK and unemployment that is lower here than in the UK.
We need to build on those strong foundations. Chancellor Philip Hammond announced his budget on Monday