22 Apr 2009
Today's budget sets the foundation for a strong economic recovery by helping Scotland through the downturn and investing in future growth, the Secretary of State for Scotland Jim Murphy said today.
He said:
"This budget means more money for Scotland. The Scottish Government will have £700m more cash next year to spend. On top of that, the UK Government is spending nearly £400m extra in Scotland next year.
"Of course the Scottish Government has to find efficiencies of equivalent to £367m next year but that should be achievable given the UK Government is finding nearly £5bn of efficiencies without any reduction in frontline services".
"Scotland's budget has grown year on year since devolution - having doubled in a decade - to £34.8bn this year. In addition, the UK Government spends a further £22.5bn on reserved areas such as welfare and defence in Scotland."
The budget includes a wide range of measures which will help Scotland, including:
-Barnett consequentials of £104m as a consequence of increased spending for UK Departments ¿ including £45m on support for housing, £27m on supporting energy efficiency, £12m for training and employment, and £17m to build FE colleges
- A package to increase investment in North Sea infrastructure
- A £1.7bn package to ensure Jobcentre Plus can respond to rising unemployment. There will be a job or place in training for anyone aged under 25 who has been out of work for 12 months
- To support business, an increase in the enhanced capital allowance rate to 40% per cent for one year. Trading loss carry-back for viable businesses will be extended from one to three years - this should help 8,400 businesses in Scotland
- An additional payment alongside Winter Fuel Payment worth £100 for households with someone over 8 and £50 for someone over 60 - this will help 750,000 households in Scotland
- An increase in the Child Tax Credit of £20 in April 2010 which will help 540,000 children in Scotland
- £750m Strategic Investment Fund will support advanced industrial projects of strategic importance
Jim Murphy said:
"This is a budget for jobs and a responsible budget for Scotland in these difficult times.
"The Government has already acted decisively to counter the effects of this global economic crisis. It has devoted a huge resource to Scotland's economy: a £20bn boost in the PBR, the £50bn recapitalisation of the banks, the asset protection scheme, mortgage protection, and the enterprise finance guarantee scheme supporting up to £1.3bn of new lending by banks to SMEs are just a few of the steps it has taken.
"Today we have acted to maintain our momentum and protect our people through these difficult times while working towards long term stability. We will get through this if we work together and today's budget helps that process.
"Today's budget goes further and supports investment, individuals, companies and families. It is a key step on the route to recovery with measures to alleviate the pressures on individuals and businesses.
"We find ourselves having to balance the books as a consequence of an unprecedented global crisis, a situation every household across the country will understand."
Efficiency savings
Jim Murphy added:
"Scotland has reaped the benefits of a £2bn fiscal stimulus and the £50bn rescue of the banking system.
"It's only right the Scottish Government should find efficiencies in a budget of this size. The Chancellor has shown today how UK departments can save billions without impacting on frontline services. There is no reason the Scottish Government can¿t do the same.
"Most families and businesses are having to tighten their belts and so do we. The Scottish Government surely can't believe it alone should not be making sensible savings to balance the books.
"The First Minister has already accepted the Prime Minister's offer of help from Treasury officials to identify potential savings in the Scottish Government's budget. It's now time for that process to begin moving forward faster.
"At times like this it is more important than ever to work together. The Scottish people won't forgive anyone who lets partisan politics get in the way of economic recovery."