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Spending review allows for 1.8 per cent annual growth |
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Tuesday, 09 October 2007 |
The Scottish Government will receive an additional £7.2 billion as a
result of this year’s Comprehensive Spending Review, announced by
Chancellor of the Exchequer Alistair Darling today.
This will allow spending by the Scottish Government to grow by an average annual rate of 1.8 per cent in real terms over the next three years, the Treasury said.
Secretary of State for Scotland, Des Browne, claimed that this was a “very good” Comprehensive Spending Review for Scotland. The Scottish Executive [Departmental Expenditure Limit] budget has increased from £14 billion in 1999-2000 to £26 billion in 2006-07 and spending on public services in Scotland is currently at record levels.”
This Review “ensures that there will continue to be substantial growth in public spending over the next three years… for the benefit of all in Scotland. On top of that the Scottish Executive will be able to draw down their remaining End Year Flexibility stock of almost £0.9 billion in the next three years,” Browne said.
The SNP claimed that Labour was reducing the baseline of our budget, so the 1.8 per cent increase announced actually represents 1.4 per cent over three years. "That means Scotland’s lowest budget increase since devolution, and that Scotland’s increase is well below that of the rest of the UK – only half a percent a year in real terms," said SNP Westminster Treasury spokesman Stewart Hosie.
The SNP had anticipated the announcement by stating yesterday: “No matter how Gordon Brown and his Chancellor try to fiddle the figures, it is clear that the coffers are empty and key spending departments will now be subject to a very real spending squeeze.”
Liberal Democrat Scottish spokesman at Westminster Alistair Carmichael claimed that the SNP’s claims were cynically motivated. “It has been clear for months that this would be a difficult spending review. Are we expected to believe the SNP never knew?
“The truth is they cynically promised things they knew they could never deliver, and now they’re desperately blaming everyone but themselves for the resulting mess.”
Scottish Conservative finance spokesman Derek Brownlee said it would be tempting for First Minister Alex Salmond to accuse the UK Government of 'fixing' the levels of funding available to the Scottish Government for political reasons.
“Given Gordon Brown's record of putting party interest ahead of the national interest, many people would be ready to believe such an accusation. If there is any evidence of a political fix in relation to the funding allocated to the Scottish Government, then I expect the First Minister to publish in full the details of where and how he believes the figures have been manipulated.”
Meanwhile, various organisations and interests laid out their stalls following the announcement.
Grahame Smith, general secretary of the Scottish Trades Union Congress, said: “The CSR settlement is, as was generally anticipated, tight. The Scottish Government must now work to ensure that key services are protected in the forthcoming Scottish budget. The STUC encourages the Scottish Government not to adopt the further efficiency savings announced today that are bound to have an unwelcome impact on the quality of public services.
CBI Scotland’s chairman, David Thorburn, said that public spending growth in Scotland would ease back over the next few years, “at a time when clouds are emerging on the horizon for the two other key drivers of the economy, namely consumers and business”.
“The new devolved Administration has rightly said the growth of the economy is its number one priority, so Ministers should use their upcoming Strategic Spending Review, which will set out their devolved spending priorities for the next three years, to underline this.
“A far greater proportion of taxpayers’ money should be used on investment and reforms that support wealth creation and enable Scotland to meet the major economic challenges it faces. The focus ought to be on enhancing education and skills, infrastructure and transport capacity, and the planning system.”
Meanwhile James Jopling, head of campaigns for Shelter Scotland, made the case for funding to go into housing. "Whilst Scottish politicians wrestle with the final impact of the comprehensive spending review, the people of Scotland still expect a significant increase in investment in affordable housing for rent.
"We've seen expectations heightened by a very positive commitment to housing from Westminster and see no reason why this shouldn't be replicated here.”
One person has commented on this article. 1. National Youth Strategy
Jim Sweeney, Unregistered We would hope that despite the disappointing settlement the Scottish Government stick to their commitment to implementing the National Youth Work Strategy and acknowledge the benefits of youth work interventions in realising a greater benefit to those young people requiring additional help and support,more choices and more chances.The sector is ready to work closely with government to improve both universal and targeted youth work provision and the Youth Work year of action has clearly shown the potential of such a partnership
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Last Updated ( Tuesday, 09 October 2007 )
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