£5 billion plan for Scotland to build its way to recovery from Covid

A £5 billion programme of investment to help Scotland build its way back to recovery from the Covid pandemic has been set out by Finance Secretary Kate Forbes.

The funding will "support jobs" and seek to revive ailing town centres, as well as enhancing broadband roll-out and pay for NHS buildings, Ms Forbes told the SNP virtual conference today.

It will be unveiled when she sets out her budget to Parliament in coming weeks.

Finance Secretary Kate Forbes. Picture: Andrew Cowan/Scottish Parliament via Getty Images

The package was described as "essential investment" that is needed for the country's ailing economy in the aftermath of the Covid pandemic by the Finance Secretary.

But she warned the devolved system of government limited her ability to intervene in the economy and insisted next year's Holyrood election would provide an "unequivocal, unavoidable" case for another independence referendum if nationalists secure a majority.

"In a few weeks, I will set out the Scottish Government’s budget with a five-year pipeline of investment in infrastructure to boost economic growth," Ms Forbes told SNP delegates.

“[This will be] not pet projects like a Boris bridge to Northern Ireland, but the essential investment our economy and public services need.

"The Capital Spending Review will provide the funding for our Infrastructure Plan. It will include almost £5bb to inclusive economic growth, including £500 million to extend full fibre broadband to businesses and households in rural areas and £30m to support our islands.

"It will see more than £11bn invested in our cities, towns, villages and rural areas, including £275m to revitalise our town centres and create vibrant neighbourhoods and nearly £2bn on health infrastructure and equipment.

"Investment that transforms our country, renewing and rebuilding. Investment that creates jobs and supports society. Investment that tackles poverty and meet the climate challenge.

“I will always push the powers of devolution as far as they can go to build a better, fairer economy – but I cannot hide the limitations on our options."

The SNP minister claimed she was effectively being forced to produce a budget "blindfolded" and with "one arm tied behind my back", because the UK Government budget, which still produces about a third of Scotland's funding, is not being unveiled until early next year.

The Cabinet Secretary said the Holyrood election next year was "critical" and would mean a "renewed, unequivocal, unavoidable mandate for an independence referendum" if the nationalists are victorious.

"I have never been so convinced of Scotland’s need for independence and, as poll after poll shows, that view is now shared by a clear majority," Ms Forbes told the conference.

"I am often asked ‘does Covid or Brexit mean we need to rip up the economic case for independence and start again?’

"Or told that we couldn’t have coped as an independent country, ignoring the reality of other small independent nations around the world facing exactly the same.

"The answer to both is categorically no. Our economy will thrive and prosper with the ingenuity of our people, the wealth of our resources and the strengths of our industries."

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