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Supporting Scottish jobs
03/12/2008
Increased spending in this year and next to accelerate projects across Scotland has the potential to support nearly 4,000 Scottish jobs, John Swinney said today.
Ministers will bring forward spending initially earmarked for 2010-11, and Scotland will receive around £11 million in consequentials over the same period following last week's Pre Budget Report.
As a result, extra spending of £38 million in this financial year and £232 million in 2009-10 will support the Scottish Government's economic recovery programme.
It is estimated the spending will directly support 2,600 jobs in the Scottish economy, with around 1,600 of those directly employed in construction, 600 in manufacturing and nearly 300 directly in related finance and business sectors.
This direct investment has knock-on effects in the economy, for example through the purchases of supplies and materials which it is estimated would support a further 1,200 jobs. In total therefore, this additional investment has the potential to support nearly 4,000 jobs in the Scottish economy.
In the Cabinet Secretary for Finance and Sustainable Growth's statement he also detailed specific projects which will be brought forward using the money this year, including:
- The A96 Fochabers bypass, and roads improvements on the A9 at Moy, Carrbridge and Bankfoot
- Money for Scottish Enterprise to accelerate projects such as the SECC Arena development
- £10 million in 2008-09 for additional Affordable Housing projects
- £7.5 million in 2008-09 for Further & Higher Education
Mr Swinney said:
"Last week I made clear the Government will deliver full value for the accelerated spending in Scotland allowed by the Pre Budget Report.
"That is crucial at a time of economic downturn. Our estimates suggest that across the two years, this accelerated investment could support around 4,000 Scots jobs. That direct economic benefit is exactly why we have long called for this kind of accelerated investment.
"A substantial share of the accelerated money will go to local government.
"Councils are clear that they want to accelerate capital expenditure and, between them, they will be able to bring forward a substantial programme of capital investment.
Most of this will be for 2009-10. I am planning on around £100 million over the two years - including £10 million this year - being spent by councils on a range of capital projects.
"Councils will take decisions based on local priorities. Equally, in agreeing to provide the flexibility to accelerate spend I have made clear, on the part of the Scottish Government, the sort of projects I believe will be needed to boost economic recovery and an important element of this package will be new schools accommodation. We will jointly work towards an agreement where a specific package of projects across Scotland is identified by local government in discussion with the Scottish Government. Full details will be agreed with local government and announced as soon as possible.
"I am also pleased to announce today an additional £10 million in 2008-09 for additional spend on the affordable housing investment programme.
"We will target this additional support on the areas and individuals who are most in need, bringing additional units into Scotland's stock of affordable housing.
"Road schemes will receive some £4.5 million of accelerated investment this year - that includes specific projects such as the A96 Fochabers bypass, and road improvements, including on the A9 at Moy, Carrbridge and Bankfoot.
"We will also be providing additional capital resources to the Borders Railway Project to take forward a package of advance works this financial year. The money will go into protecting or diverting key utility services along the railway's route.
"We have also agreed to accelerate 5m of funding to Scottish Enterprise this year to bring forward a range of projects such as the SECC Arena development.
"We are accelerating £7.5 million this year and additional funds next year for Further and Higher Education, through the Scottish Funding Council. This will fund building improvements, including achieving modern energy efficiency standards. The economic benefits will be spread across Scotland through refurbishment and other projects likely to be attractive to local firms.
"Examples include the University of Abertay Dundee where work will be brought forward to improve the energy efficiency of key buildings within the university. "