Scottish Government

This item was published during the term of a previous administration that ended in April 2007

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Record spending will make a difference for Scotland: McConnell

20/09/2000

Scotland's first three-year budget will lead to record levels of spending on government services Minister for Finance Jack McConnell said today.

It will result in an extra £600 for every man, woman and child and will make a difference to Scots both now and in the long term, he added.

Announcing the Scottish Executive's spending plans in Parliament, the Minister said:

"Today's announcement confirms we are investing in the people's priorities of health. education, services and transport. And this will be sustained growth, not a boom and bust scenario."

• Education - a record level of £5 billion in total by year three for education spending
• Health - record levels of spending confirmed at an extra £400 million each year.
• Transport - a record level of £170 million more cash by year three and a rise of 45 per cent.
• Services - record levels of spending with a £1.2 billion increase for local government by year three with a 57 per cent increase in allocation for capital programmes.

The Minister added:

"There is little merit however in having extra resources if we can't make sure we squeeze the best possible value out of every pound.

"I want to take the search for value further and can announce today that Ministers have agreed to a series of Best Value reviews of significant spending budgets over the next three years. To help the process I will appoint a Best Value Board with experience of management and change to ensure we are rigorous in this review.

"We will practice what we preach, delivering greater value for money as well as targeting the spend towards our key priorities.

"Social Justice is at the heart of all our policies as we strive to tackle inequality and disadvantage. I can announce today new measures to close the gaps between rich and poor.

"We are establishing a Better Neighbourhoods Fund which will be targeted on communities suffering deprivation. With £90 million over three years to be spent by local authorities.

"We are also introducing a package of measures for the elderly including concessionary fares, community care and central heating.

"There will also be a series of initiatives for young adults involving education, tackling youth crime and drug addiction.

"It is thanks to the current prosperity in the UK that Scotland now has substantial additions to the spending plans we consulted on during the summer. Our Departmental Expenditure Limit will increase by £800 million next year, over £1.9 billion the following year and by £3 billion in 2003-04. That is extra spending of over £1 billion, £2 billion and £3 billion compared to now.

"This is a three year budget for Scots and for Scotland. A plan for urban and rural communities, a plan for old and young. It will make a difference from Aberdeen to Arran, it will make a difference if you are eighty and struggling to cope, and it will make a difference if you are eighteen and starting a new adult life.

"It is a budget for all of Scotland, made possible by a strong economy, made reality by this Scottish parliament and the partnership between those parties who want this new system to work for the people of our land.

"It is a fitting start to a new century and for all of Scotland."

NOTES TO NEWS EDITORS

1. The new budget plans for the next three years are detailed in the table below.

2. The figures used reflect the change to Resource Accounting and Budgeting this year. The new system brings the Government into line with commercial practice. The figure shown in the table are Departmental Expenditure Limits (DEL) which is the basis in which the Barnet Formula works.

3. Link to report Making a Difference for Scotland: Spending Plans for Scotland 2001-02 to 2003-04

News Release: SE2514/2000
20 Sep 2000