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Pre Budget Report
24/11/2008
Commenting on the Chancellor's Pre-Budget Report delivered by Chancellor Alastair Darling at Westminster, Finance Secretary John Swinney said:
"At a time of economic downturn, we welcome all steps that will boost the Scottish economy, and welcome key aspects of the Chancellor's Pre-Budget Report - including the cut in VAT, and the extra help for business that the Scottish Government have long been calling for. However, we also argued for targeted action on VAT to help people struggling with fuel bills and to boost the housing sector, which is still needed.
"And at a time when North Sea oil revenues are making a major contribution to the UK's finances - with a record £13.2 billion expected this year, and higher revenues forecast next year compared to last - Scotland could and should have received a lot more from the PBR.
"The re-profiling of the capital budget is very welcome, enabling the Scottish Government to bring forward up to £260 million investment in priority areas under the Barnett Formula. However, the reality is that there is only some £11 million of new money for Scotland, which is disappointing.
"And we are extremely worried about the consequences of the reduction in UK departmental spending in 2010-11, which could see a cut of up to £500 million in the Scottish Government's Budget over and above any reprofiling of spending - just as we expect the economy to be emerging from very difficult conditions.
"When North Sea revenues are forecast to contribute £55 billion to the Treasury over the coming six years, compared to £41 billion over the previous six, nothing better illustrates the need for Scotland to be responsible for all of our tax and spending decisions."