Chamber
Meeting of the Parliament 07 December 2011
07 Dec 2011 · S4 · Meeting of the Parliament
Item of business
Autumn Budget Statement and the Scottish Economy
I point out to Mr Brown that the UK Government has of course reduced our capital budget by 36 per cent, which has been moderated to 32 per cent. In the overall funding envelope that is available to us, we are acting to mitigate the significant reduction in the capital budget that was 36 per cent and has been tempered to 32 per cent by the autumn statement. We made the transfers from resource to capital to support the capital programme.
Yesterday, we published our “Infrastructure Investment Plan 2011”, which outlines more than 50 key infrastructure projects in a range of sectors across Scotland. The commitments in that programme will see the A9 dualled by 2025 and the A96 dualled within a further five years. That will complete the dualling of the routes between all Scotland’s six cities and will deliver significant economic benefits. The whole plan demonstrates a vision of how we take forward Scotland’s infrastructure.
As we said in a debate last Thursday, we are taking active steps to encourage people back into employment. We have the programme to fund a record 25,000 modern apprenticeship places and the opportunities for all programme, which guarantees a training or learning place for all 16 to 19-year-olds. Mr Russell will deal with more of those questions, including details on the additional £15 million that we have made available today for the college transformation fund, which will assist colleges in giving effect to the reforms that we have proposed to provide better outcomes for employers, learners and taxpayers into the bargain.
The Government can welcome some elements of the programme that was announced in the autumn statement. We welcome the increased resources of £433 million in capital consequentials over the duration of the spending review. The delivery of those additional resources comes later than I would like, because capital investment is required now but two thirds of the additional capital will not be available until years 2 and 3 of the spending review. Although those consequentials are welcome, they would have greater economic impact if they were delivered in the short term rather than the medium term.
Yesterday, we published our “Infrastructure Investment Plan 2011”, which outlines more than 50 key infrastructure projects in a range of sectors across Scotland. The commitments in that programme will see the A9 dualled by 2025 and the A96 dualled within a further five years. That will complete the dualling of the routes between all Scotland’s six cities and will deliver significant economic benefits. The whole plan demonstrates a vision of how we take forward Scotland’s infrastructure.
As we said in a debate last Thursday, we are taking active steps to encourage people back into employment. We have the programme to fund a record 25,000 modern apprenticeship places and the opportunities for all programme, which guarantees a training or learning place for all 16 to 19-year-olds. Mr Russell will deal with more of those questions, including details on the additional £15 million that we have made available today for the college transformation fund, which will assist colleges in giving effect to the reforms that we have proposed to provide better outcomes for employers, learners and taxpayers into the bargain.
The Government can welcome some elements of the programme that was announced in the autumn statement. We welcome the increased resources of £433 million in capital consequentials over the duration of the spending review. The delivery of those additional resources comes later than I would like, because capital investment is required now but two thirds of the additional capital will not be available until years 2 and 3 of the spending review. Although those consequentials are welcome, they would have greater economic impact if they were delivered in the short term rather than the medium term.
In the same item of business
The Deputy Presiding Officer (John Scott)
Con
The next item of business is a debate on motion S4M-01501, in the name of John Swinney, on the United Kingdom Government’s autumn budget statement and the Sc...
The Cabinet Secretary for Finance, Employment and Sustainable Growth (John Swinney)
SNP
I am grateful for the opportunity to open the debate on the autumn budget statement and the wider Scottish economy. It is now more than three years since the...
Mary Scanlon (Highlands and Islands) (Con)
Con
In comparing the United Kingdom with France and Germany, does the cabinet secretary accept that the coalition Government inherited the highest level of debt ...
John Swinney
SNP
I know that Mary Scanlon assiduously follows my speeches in the Parliament. She will not have noticed me in any way shirking from apportioning responsibility...
Richard Baker (North East Scotland) (Lab)
Lab
The cabinet secretary has rightly referred to the revision downwards of growth forecasts. What impact will that have on the Scottish Government’s spending re...
John Swinney
SNP
Mr Baker asks a fair question. I point him to the evidence that I shared with the Economy, Energy and Tourism Committee some weeks ago. In the year of greate...
Gavin Brown (Lothian) (Con)
Con
I apologise for missing the start of the cabinet secretary’s speech.In the switch from revenue to capital quite a large sum—about £150 million—will go into t...
John Swinney
SNP
No. The budget proposals rely on a shift from the revenue columns to the capital columns—that is a straightforward transaction in the budget document.
Gavin Brown
Con
The Forth crossing is not in the revenue budget.
John Swinney
SNP
I point out to Mr Brown that the UK Government has of course reduced our capital budget by 36 per cent, which has been moderated to 32 per cent. In the overa...
Willie Rennie (Mid Scotland and Fife) (LD)
LD
The infrastructure plan is a 20-year plan. The increased funding is provided within the first three years. What has been accelerated as a result of the incre...
John Swinney
SNP
Mr Rennie expects me to take a look at those questions, and we will come back to the Parliament, as we will on the other consequentials, to set out how our p...
Neil Findlay (Lothian) (Lab)
Lab
Will the minister give way?
John Swinney
SNP
I would give way to Mr Findlay if—
The Deputy Presiding Officer
Con
Cabinet secretary, you are in your last minute.
John Swinney
SNP
I apologise to Mr Findlay. I will happily deal with his points during the debate.The autumn statement provided some additional capital consequentials for the...
Richard Baker (North East Scotland) (Lab)
Lab
This is a welcome opportunity to debate the autumn statement and its implications for Scotland. It comes at a critical point for our economy and for the worl...
Jackson Carlaw (West Scotland) (Con)
Con
Is it not a consequence of the coalition Government’s strategy that we have the lowest interest rates in the world? Would not a consequence of the Labour Par...
Richard Baker
Lab
I presume that Mr Carlaw would not have acted to bail out the banks. The UK Government has left us the lowest rates of growth in the world, and it has choked...
Gavin Brown
Con
Will the member acknowledge what the Institute for Fiscal Studies has stated? It said that if Labour’s plans had been implemented, they would“now of course h...
Richard Baker
Lab
No, because the figures that I have show that the UK Government plans £37 billion more borrowing in future years than the amount in Labour’s plans that were ...
Gavin Brown
Con
Will the member give way?
Richard Baker
Lab
I have already given way to Mr Brown. I will try to take an intervention from him later.We understand that there will be limited consequentials in the new pl...
John Swinney
SNP
Will Mr Baker take this opportunity to confirm his understanding of the spending review, which involves a rising trend of capital expenditure in Scotland des...
Richard Baker
Lab
My understanding, from what the cabinet secretary said earlier, is that there will be consequentials later in the spending review cycle involving increased s...
Gavin Brown (Lothian) (Con)
Con
It is worth reflecting on some of the analysis and feedback from economists since last week’s autumn statement. The Economist put it simply, stating that“the...
Stuart McMillan (West Scotland) (SNP)
SNP
Does Gavin Brown agree that it is strange that it takes the OBR 18 months to realise that the strategic deficit is worse than planned? What has it been doing...
Gavin Brown
Con
I find it surprising that the member wishes to criticise the OBR, which has received praise for its work from across the political and economic spectrum and ...
Richard Baker
Lab
What is the cost to our economy from the fact that our growth rates are higher than only those of Greece and Portugal, out of the whole euro zone?
Gavin Brown
Con
The growth rates are very disappointing, but if one looks at the OBR report in full—not just the press release that accompanied it—one sees that, although th...