Nicola Sturgeon speech: SNP leader pledges £20 billion ‘energy fund’ to finance Scottish independence

Nicola Sturgeon has pledged to fund investment in an independent Scotland with oil revenues and borrowing in a re-hash of the plans the party announced before the 2014 referendum.

The announcement, ahead of the publication of a refreshed economic case for independence on Monday next week, came as the SNP leader told party’s conference it was time to “finish the job”.

In a 58-minute keynote speech, the First Minister received several standing ovations from delegates in a well-received performance which focused on foreign policy before moving on to attacks on the Westminster political parties.

The SNP leader also told delegates the proposed referendum next year would not go ahead if the Scottish Government loses its Supreme Court case, and admitted to delegates that independence would not be a “miracle economic cure” and it would pose “many challenges” for Scotland.

The First Minister also called on delegates to not take for granted the prospect of demographic changes leading to majority support for independence, stating the SNP must “make the case and win the argument”.

And she announced a doubling of bridging payments for those receiving free school meals from £130 to £260.

Critics said the speech was a demonstration of the First Minister’s “skewed priorities”, which further showed the SNP and the Scottish Government “can do better” and underlined their “disastrous governance of this country”.

The main policy announcement of the speech was the plan to combine of remaining oil revenues in the North Sea and borrowing to deliver £20bn of investment.

First Minister Nicola Sturgeon after delivering her keynote speech during the SNP conference

This would be delivered within the first decade of independence, the SNP leader told delegates.

The plan appears to be a rebadging of a similar plan revealed by both Ms Sturgeon and the former first minister, Alex Salmond, in 2014. It is also similar to a proposal in the Sustainable Growth Commission, the Fund for Future Generations, which envisaged oil revenues being used by the Scottish National Investment Bank.

Announcing the plans for the ‘Building a New Scotland Fund’, Ms Sturgeon said the plans would demonstrate an independent Scotland’s use of borrowing powers would be “responsible and for a purpose”.

This fund, which the First Minister said could result in £20bn of investment, could decarbonise housing, cut fuel bills, reduce fuel poverty, and fund the construction of affordable housing.

First Minister Nicola Sturgeon on a escalator on her way to the exhibitors hall at the SNP conference at The Event Complex Aberdeen (TECA) in Aberdeen , Scotland. Picture date: Sunday October 9, 2022.

The SNP leader said this would ensure Scotland fulfils the condition of having a fiscal and monetary policy that is “sustainable and command[s] confidence”.

She said: “We propose to invest remaining oil revenues and use our borrowing powers, not to cut tax for the richest, but to set up an independence investment fund.

“It will help the transition to Net Zero. Build resilient communities. And kick-start the sustainable economic growth so important for our newly independent nation.

“Combining Scotland’s abundant resources with the powers of independence to benefit this and future generations. That is what independence is all about.”

She added: “Independence is not a miracle economic cure. But let this message ring out today. We can do better than this. We can do so much better than this.

“We have got everything it takes to be a successful independent country. Extraordinary resources, industries and talent in abundance."

Ms Sturgeon also doubled-down on her plans to hold a “de facto” referendum on independence at the next general election, should the Supreme Court rule that Holyrood cannot legislate to hold a vote.

She said: “If the Court decides in the way we hope it does, on 19 October next year, there will be an independence referendum.

"If the court doesn’t decide that way, first, and obviously, we will respect that judgment. We believe in the rule of law and as a party and a movement we will, of course, reflect.

"But fundamentally, it will leave us with a very simple choice, put our case for independence to the people in an election, or give up on Scottish democracy.

"I will never - ever - give up on Scottish democracy.”

The First Minister defended her decision to push for a referendum during the cost-of-living crisis, arguing that the crisis itself was the reason a referendum was required.

She said: “laying bare, each and every day, the harm being done to people in Scotland because we are not independent”

Ms Sturgeon said independence remains “essential” in order to “escape Westminster control and mismanagement” and to “get the governments we vote for”.

She added the “independence generation” must “never, ever lose faith” in the right to self-determination and the “overwhelming power of democracy to triumph”.

In a speech light on new policy, the SNP leader also took aim at Westminster politicians, including Labour.

Ms Sturgeon accused the Conservatives of working towards the destruction of the NHS, claiming that “with independence, that will never happen”.

She added that budget cuts from Westminster meant it was “harder for us to protect the health service”.

The First Minister also described the premiership of Liz Truss as “another spin on the Tory misery-go-round”, accusing her of causing “mayhem in the markets”, labelling it an “unconscionable” move.

She said the only growth in the Prime Minister’s plan was “growth in the deep disgust the public feel for all of it”.

She said: “The truth is massive hand-outs for the wealthiest at the expense of everyone else do nothing for the economy. All they do is turbo-charge inequality.

"No SNP Government will ever inflict on Scotland such an immoral, self-defeating disaster of a policy.”

Turning her attack to Labour, Ms Sturgeon said the party now “cower[s]” away from making principled arguments about Brexit.

“They abandon all principle for fear of upsetting the apple cart,” she said.

"Bluntly - they are willing to chuck Scotland under Boris Johnson’s Brexit bus to get the keys to Downing Street. Letting down Scotland. Same old Labour.”

In one of the few policy announcements in the speech, Ms Sturgeon announced the doubling of the quarterly “bridging payments” made to children and young people who receive free school meals, but who don’t receive the Scottish Child Payment.

This will be doubled from £130 to £260 ahead of Christmas, a decision which will “help put food on the Christmas table” for around 145,000 people.

The First Minister added: “I don’t pretend it will make all of their worries go away - no government with our limited powers can ever do that.

"But I hope this investment of almost £20 million will bring a bit of Christmas cheer to those who need it most.”

Critics attacked the speech for its overwhelming focus on the constitutional question, with Douglas Ross labelling it “narrow” and “independence obsessed”.

The leader of the Scottish Conservatives said the First Minister’s speech demonstrated her “skewed priorities” and included “red meat for the SNP faithful”.

He added: “It beggars belief that in the midst of a global cost-of-living crisis – which ought to be her top priority – Nicola Sturgeon devoted so much of her speech to the push for another divisive referendum that most Scots don’t want.

“She has taken her eye off the ball again and proved that the SNP will never put the people’s priorities first. Their own, self-serving, constitutional obsession always takes priority over everything.”

Jackie Baillie, the deputy leader of Scottish Labour, said “no amount of spin can hide the SNP’s disastrous governance of this country”.

She added: “I can't help but agree with one line of Nicola Sturgeon's speech today - she and the SNP can do better.

"She had the chance to set out a vision to use the power already in her hands to deal with the problems facing Scotland, instead she doubled down on the politics of division.

"But it isn't another divisive referendum that will get Scotland back on track, it’s politicians focused on dealing with what actually matters.”

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