Labour promises £70bn for Scottish economy

Party condemns austerity and insists it is ‘coming for power’

Labour’s shadow chancellor has pledged a £70 billion boost for the Scottish economy, as he insisted the party was “coming for power”.

John McDonnell outlined how a future Labour government would increase spending north of the border, pledging money for public services and for infrastructure investment, along with the possibility of speed rail up to Scotland.

He revealed details of the cash as he closed the Scottish Labour conference in Dundee.

He said there could be an extra £3bn a year in Barnett consequentials – cash that comes to Scotland as a result of spending decisions taken by the UK – amounting to £30bn over 10 years.

He also said Labour’s £250bn National Transformation fund would see £20bn spent in Scotland over a decade, that could help “rebuild our crumbling infrastructure and deliver key investments such as extending HS2 to Scotland”.

A UK National Investment Bank could provide another £20bn in Scotland over 10 years, helping small and medium businesses.

“Let’s do the sums. Taken together, our commitments over a decade could mean an additional £70 billion for the Scottish economy,” Mr McDonnell said.

And he compared the spending from Labour’s planned UK Investment bank with the SNP’s “measly £340 million” of initial capital for the “so-called Scottish Investment Bank”.

He told the nationalists: “If you are going to steal our ideas, for goodness’ sake do it with a bit of style.”

The shadow chancellor used his speech to condemn the austerity being imposed on people by both the UK Conservative Government and the SNP administration in Edinburgh.

Under the nationalists he claimed Scotland’s economy was “stagnating”, telling party activists: “There has been nothing done in the last 10 years to grow the economy, to tackle the blight of poverty that is scarring Scotland.”

With Scottish Labour having elected left-wing MSP Richard Leonard as its new leader in November, Mr McDonnell also insisted the party was heading back to power in both Westminster and Holyrood.

He told the conference: “We have had enough, we’re not taking any more.

“We’re coming for power and to power and we will seize it in Scotland as we will in the rest of the UK.”

Pictures: Mhari Edwards. Shadow chancellor John McDonnell, and audience members contributing to the Scotland in the World debate.