Spending review: What’s in it for Scotland?

Rachel Reeves announced the UK Government’s spending review today.   

The chancellor made a raft of promises worth £52bn for Scotland by the end of 2029. 

Along with funding for Northern Ireland and Wales, it is being referred to as the “largest settlements in real terms since devolution was introduced”, by Reeves.  

Here’s what has been announced for Scotland:  

Acorn carbon capture and storage 

The carbon capture project in Aberdeenshire had been left off the reverse list for funding when support was given to similar projects in the north of England. 

Until now, both the Conservative and Labour governments had been under pressure to grant funding for the Scottish-based scheme, after both made promises.  

It appears that the pressure has worked, as Reeves told parliament that a final investment decision on the Acorn project will be taken later this parliamentary term. She has not specified how much funding will be allocated.   

Edinburgh-based supercomputer  

In 2023, it was announced that the University of Edinburgh would be home to the UK’s most advanced supercomputer.  

The exascale computer would have been able to make a quintillion calculations every second – far exceeding any technology owned by the UK. But the Labour-led government shelved the project, arguing it was an unfunded spending commitment left over by the last government.   

However, Reeves announced that the government will allocate £750m to the supercomputer at the University of Edinburgh, which has already constructed the facility to house the technology. 

Scotland secretary Ian Murray said: “This will see Scotland playing a leading role in creating breakthroughs that have a global benefit – such as new medicines, health advances, and climate change solutions.”   

Defence   

The UK Government has committed to increasing its defence spending, and with that, there will be greater investment made at the HM Naval Base Clyde based at Faslane.   

The site, which is home to the UK’s nuclear fleet of submarines and is one of the most integral parts of the defence infrastructure, will benefit from an initial £250m over the next three years. 

Reeves has said the funding will benefit Scottish manufacturers and will support jobs, skills and growth at the nuclear base, which employs more than 6,500 people, including military personnel and civilian contractors.   

Growth Mission Fund  

The Growth Mission Fund, the UK Government’s new initiative focused on local projects to drive economic growth, will be allocated to at least one area of Scotland.   

Kirkcaldy will be granted a portion of funding, but the amount has not yet been announced.   

Barnett consequentials    

An increase in funding for many of the UK Government departments will mean that there will be an uplift in funding for the Scottish Government through Barnett consequentials.  

Asylum hotels   

Reeves said she plans to end the “costly use of hotels to house asylum seekers” by using funding to tackle the asylum backlog during the parliamentary term.