£1.2bn to speed Scots recovery
Chancellor’s spending pledge as ‘millions of jobs protected’
SCOTLAND is set for a £1.2billion Budget boost as the fight against coronavirus continues.
The Chancellor committed to supporting millions of UK families and businesses as he hailed the ‘strength and stability’ of the Union.
With the extra cash allocated, Scotland is now in line for a total of £3.6billion in Barnett formula funding from the UK Government in 2021/2022.
In a Budget that ‘meets the moment’, Rishi Sunak announced an extension of the furlough and self-employment support schemes to the end of September.
He also confirmed the £20 Universal Credit top-up will be extended for six months, and a one-off £500 payment will be available for eligible claimants.
Targeted spending in devolved areas in England will, under the Barnett formula, see the Scottish Government handed the additional £1.2billion.
‘Ensure we bounce back from pandemic’
UK officials last night confirmed this is on top of the £2.4billion announced at the spending review for the coming financial year.
Mr Sunak said: ‘The UK Government has protected millions of jobs and livelihoods across Scotland – and the strength and stability of our economic Union will ensure we bounce back from this pandemic together.’
The Budget will accelerate ‘growth deal’ funding in Ayrshire, Argyll and Falkirk. A £27million investment was announced in the Aberdeen Energy Transition Zone.
Mr Sunak said a further £5million will be given to the Global Underwater Hub in Aberdeen. A freeze on alcohol duty is also set to help the whisky industry.
Scottish Secretary Alister Jack said: ‘Today’s Budget demonstrates the UK Government delivering for people in Scotland.’
He added UK ministers would continue to spearhead efforts to deliver vaccines and testing in Scotland: ‘The strength of the Union and the support provided by the UK Treasury has never been more important to Scotland.’
Finance Secretary Kate Forbes welcomed the Budget announcement but claimed the UK Government did not go far enough.
She said: ‘The Scottish Government has already gone much further in our support for businesses and households, with 100 per cent rates relief, council tax frozen and a five-year investment plan.’
Scottish bosses said they understood the ‘difficult’ decisions facing the Chancellor. Dr Liz Cameron, director and chief executive of the Scottish Chambers of Commerce, said: ‘Reassurance has been provided today. But the Chancellor must keep the door open to providing more support if the pandemic hits our economic reopening.’
David Lonsdale, the director of the Scottish Retail Consortium, said: ‘There is much retailers will welcome.’
Andrew McRae, Federation of Small Business Scotland policy chairman, said: ‘Today’s package of measures gives the bulk of Scotland’s small business community more fuel to get through the last lap of this crisis.’