Scotland’s budget is to increase by an extra £640 million this year thanks to UK Government spending decisions - which will boost our economy and public services.
We are also directly investing in Scotland – supporting regional growth deals, our food and drink sector and our whisky industry. And our tax cuts combined with the National Living Wage mean Scottish workers are £5,200 better off compared to 2010.
While the SNP cut public services and hiked taxes in their budget, we are delivering for Scotland.
The UK Government continues to deliver for Scotland
Scotland will see the largest year on year increase in funding in a decade. On top of £640 million announced at this budget, £1.3 billion is already coming to Scotland as a result of the spending round in September 2019. This means the UK Government is sending Scotland more than £1.9 billion in additional Barnett consequentials, compared to 2019-20. This will be the largest year-on-year real-terms funding increase for the Scottish Government in a decade. (HM Treasury, Budget 2020, 11 March 2020, link).
The UK Government is supporting Scotland’s whisky industry with a duty freeze and £10 million of new investment. The Chancellor announced a freeze on spirit duty for the coming year as well as a new £10 million fund to decarbonise distilleries. Moreover, the UK Government has fulfilled our manifesto commitment and will undertake a review of alcohol duty. (HM Treasury, Budget 2020, 11 March 2020, link).
£1 million has been announced for food and drink manufacturers across Scotland. The UK Government has launched a new £1 million fund to help promote Scottish food and drink, boost exports and grow the industry. (HM Treasury, Budget 2020, 11 March 2020, link).
The UK Government is committing £25 million to support growth in Argyll and Bute. On top of nearly £1.5 billion for Scottish growth deals over the last 10 years, the Chancellor confirmed a further £25 million in funding for the Argyll and Bute Regional Growth Deal. (HM Treasury, Budget 2020, 11 March 2020, link).
The UK Government is to provide £5 million in funding to support 5G in Scotland. The ‘5G New Thinking’ project is to receive £5 million in additional funding as part of the 5G Testbed and Trials Programme. (HM Treasury, Budget 2020, 11 March 2020, link).
Dundee and Perth are to receive an extra £6.7 million thanks to the UK Government. The Tay cities of Dundee and Perth will benefit from the third wave of the Local Full Fibre Networks Challenge Fund to the tune of £6.7 million. (HM Treasury, Budget 2020, 11 March 2020, link).
Scottish taxpayers are more than £5,200 better off since 2010 thanks to the Conservative UK Government. The Conservative Government is putting money back in the pockets of Scottish workers thanks to changes to the National Insurance threshold and living wage. (HM Treasury, Budget 2020, 11 March 2020, link).
The SNP are stifling Scotland’s growth
Scotland’s economic growth will trail the UK for years to come. The OBR forecast that the UK economy will grow by 1.1 per cent in 2020, 1.8 per cent in 2021, 1.5 per cent in 2022, 1.3 per cent in 2023 and 1.4 per cent in 2024. Whereas the Scottish Fiscal Commission forecast that Scotland’s GDP will grow by 1 per cent in 2020, 1.1 per cent in 2021 and 1.2 per cent in 2022, 2023 and 2024. (Scottish Fiscal Commission, Scotland’s Economic and Fiscal Forecasts February 2020, p.16, 6 February 2020, link; Office for Budget Responsibility, Economic and Fiscal Outlook – March 2020, March 11 2020, link)
Whereas the UK’s economy is being boosted by additional growth thanks to the Conservative UK Government. Thanks to billions more in spending, the UK’s economy is set to be 0.5 per cent better off over this year, compared to the SNP’s budget that is holding back growth and costing us all money. (HM Treasury, Budget 2020, 11 March 2020, link)
Scotland’s taxpayers are worse off under the SNP. The Chancellor confirmed no new changes to UK income tax levels, but as a result of tax hikes by Nicola Sturgeon’s government, middle earners like senior teachers, police officers and nurses are paying more tax in Scotland than they would if they lived in the rest of the UK. (HM Treasury, Budget 2020, 11 March 2020, link; Scottish Government, Scottish Income Tax Policy Proposal – Scottish Budget 2020-21: Factsheet, 6 February 2020, link)