Scotland to receive an extra £433m

Spending decisions in Chancellor George Osborne’s Autumn Statement will deliver almost £433 million extra to Scotland.The money will be delivered over four years to help the Scottish Government deliver capital projects, the UK Government’s Scotland Office said.

Other measures identified in Mr Osborne’s statement include the offer of £50 million to safeguard the future of cross-border sleeper train services.

Scottish Secretary Michael Moore, a Liberal Democrat MP in David Cameron’s Government, said: “This Autumn Statement comes at a difficult economic time. By sticking to our deficit reduction plan the UK has avoided the problems facing some eurozone countries.

“The measures announced by the UK Government today provide real help for Scotland at a time when parts of Europe are facing real crisis.

“In tough economic times the UK is keeping the confidence of the markets, keeping mortgage rates down and finding ways to invest more in Scotland. This clearly demonstrates the benefits to Scotland of being part of the UK.

“The job of growing our economy falls to Scotland’s two governments. The UK has announced wide-ranging measures to help Scottish companies access credit, to delay increases in fuel duty and to help the young unemployed in Scotland.

“We are also investing in broadband and increasing the state pension. This is just some of what we are doing to help Scotland.

“We have also provided an extra £433 million to the Scottish Government so that they can invest in capital projects in Scotland.

“This is new money that Holyrood was not accounting for so I am sure it will be welcomed. If it is used wisely then it can make a significant impact in growing Scotland’s economy in the years to come.”

The extra money is being allocated through the Barnett formula, which calculates how money is spread from Westminster around devolved administrations.

The nominal figures are £50 million for 2011-12, followed by £68.3 million, £141.9 million and £172.3 million in subsequent years, totalling £432.5 million.

Separately, Mr Moore said Scotland will benefit from investment in broadband, particularly in rural areas. Edinburgh will become one of 10 “UK superconnected cities”, he said.

Mr Moore highlighted the recent announcement of £100 million for the Scottish Government to invest in renewable energy and a further £200 million in extra knock-on funds through the Barnett formula.

mfl 291547 NOV 11