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Budget Bill 2009-10

09/01/2009

The Scottish Government today published its Budget Bill for 2009-10.

Finance Secretary John Swinney said the budget will help the country weather the economic storm, protect jobs and boost prospects for a strong recovery.

He said the spending plans support the Government's six point economic recovery programme.

The Budget Bill sets out further details on a substantial programme of accelerated infrastructure investment across Scotland for next year, totalling more than £230 million, which we will deliver in partnership with local government.

Mr Swinney said that the projects brought forward are a "strong economic stimulus that will boost investment, support jobs - nearly 4,700 in total - and keep the Scottish economy moving."

The budget also reflects the Government's decision, taken within its first days in office, to put sustainable economic growth at the heart of everything it does.

The Budget Bill means tens of thousands of small businesses will pay no business rates at all from April, while the Government has also put in place the resources to allow the council tax to be frozen for a second year.

Key points on accelerated spending include:

• Scottish Enterprise to accelerate investment of £30 million on strategic infrastructure projects. Although precise details are yet to be finalised, supported projects are likely to include the SECC Arena in Glasgow; additional work on the Fife Energy Park; and infrastructure works on the Edinburgh Bio-Quarter
• Road projects including £4 million for improvements and dualling the A75 from Cairntop to Barlae and previously announced projects such as the Fochabers bypass and on work on the A9 at Moy, Carrbridge and Bankfoot
• In conjunction with SPT, accelerating the delivery of strategic Park & Ride projects between Ayrshire, Lanarkshire, East Renfrewshire and Glasgow
• £50 million brought forward for the NHS to ensure vital capital projects go ahead despite the current slowdown in sales of surplus NHS land and property, including new Dental Centres in Cumnock, Ayr, Campbeltown and Inverness and the new Foresterhill Health Centre in Aberdeen
• As previously announced, local authorities are contributing to the overall effort by accelerating a number of their capital spending programmes. Discussions are ongoing with COSLA on this and further details will be confirmed in due course
• £10 million brought forward for affordable housing in 2009-10 as well as £5 million to tackle fuel poverty. This is on top of the £10 million brought forward to this year immediately following the Pre Budget Report and the announcement made in August that up to £100 million of affordable housing investment would be brought forward to this year and next, with up to £40 million contributed by local government
• £13 million of accelerated spend in 2009-10 will be invested in colleges and universities across Scotland to create and maintain modern, state-of-the-art facilities where people can get the skills and qualifications they need to get into work, remain in work and contribute to Scotland's economic future

Mr Swinney said:

"This is a budget to support economic recovery.

"In our Economic Strategy and during the last spending review this Government put increasing sustainable economic growth at the heart of everything we do.

"That was the right decision for Scotland then and this is the right budget for Scotland now.

"As we begin to feel the full effects of the downturn, it is the choices we made 14 months ago and are intensifying now that mean tens of thousands of small businesses will pay no business rates at all from April. It is our foresight that put in place the resources to freeze the hated council tax - providing vital relief for hard pressed bill payers when tough economic conditions mean they need it the most.

"Alongside these measures, the 2009-10 Budget also includes a massive £3.5 billion infrastructure programme, including increased investment in the transport network and investment of £1.7 billion in the Further and Higher education sectors.

"But few forecast the severity of the problems that awaited economies the world over.

"That is why we have had to be flexible and look again at how we can support our businesses and households through the current challenges we all face. This resulted in our six point economic recovery programme, which is supported by the Budget Bill for 09-10 published today.

"A crucial part of the recovery programme was the need for a substantial package of accelerated capital spending to provide a strong economic stimulus.

"We led the way by bringing forward a total of £100 million of affordable housing spending, £30 million in 2008-09 and £70 million in 2009-10, announced last August. The Pre Budget Report allowed us to do more and today we have published more details of how we will push ahead with spending worth £230 million across Scotland in the next year, using this facility to the maximum.

"This money will help improve roads, build schools and deliver major infrastructure projects. It will generate work, support jobs - 4,700 in total on the basis of these detailed plans - and keep the Scottish economy moving.

"All the spending decisions have at their heart our plans to help Scotland weather the economic storm and spark a strong recovery. I look forward to working with Parliament as the Bill moves forward to ensure that is exactly what we deliver."

Capital Acceleration

The Scottish Government published its Government Economic Strategy in November 2007, aimed at delivering a core Purpose of increasing sustainable economic growth. Maintaining this clear long term vision for Scotland is key. However, the Scottish Government recognises that the global economic slowdown has presented severe challenges to the Scottish economy. As a result, it has set out an economic recovery programme which builds on the steps already taken to support the Scottish economy.

The programme has six elements, designed to maintain investment and development in the economy while targeting support at households and businesses. These are:

• Reshaping capital spending plans
• Ensuring all government activity, including on planning and regulation, supports economic development
• Intensifying activity and support for tourism and Homecoming 2009
• Intensifying work around energy efficiency and fuel poverty
• Increasing advice to businesses and individuals
• Improving financial advice to vulnerable individuals