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Division · motion

The UK Government’s Autumn Budget Statement and the Scottish Economy

S4M-01501 · decided 07 Dec 2011 · lodged by Swinney, John · session S4

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Carried 64/56

That the Parliament notes the Chancellor’s Autumn Statement and that the Office for Budget Responsibility has demonstrated that the UK Government’s economic and fiscal plan has failed, with a cut of over two thirds in the growth forecast for 2012; agrees that the UK Government’s response falls far short of the urgent action that Scotland needs to boost growth; notes that the Chancellor has proposed only a limited increase in capital budgets and that two thirds of the new capital investment will not be available until 2013, despite the urgent need for a stimulus this year and next; supports the Scottish Government’s call to the UK Government for a targeted, expanded programme of some £2 billion for capital infrastructure investment in Scotland to help offset the 32% real-terms cut to Scotland’s capital budget inflicted by the UK Government; notes that the Scottish Government will support around £9 billion of capital spending over the next three years to deliver new schools, hospitals, houses, roads, water infrastructure, community facilities and improved availability of high speed broadband across Scotland; welcomes the Scottish Government’s infrastructure investment plan, which will provide crucial support for employment, with every additional £100 million of capital invested per year estimated to generate £160 million worth of economic activity and support 1,400 jobs in the wider economy for that year; notes that, as a result of the Scottish Government’s £2.5 billion non-profit distributing capital programme and switching of resources from revenue to capital, infrastructure investment in Scotland will now rise year on year throughout the spending review period; supports the Scottish Government’s actions to boost economic growth through initiatives such as maintaining Scotland as the most competitive environment for business in the UK; supports the Scottish Government’s efforts to boost economic security and household budgets by freezing the council tax, abolishing prescription charges and protecting concessionary travel, and welcomes the success of Scotland’s enterprise agencies in securing major new investments in recent months from international companies.