Rishi Sunak said the UK budget will mean an extra £1.2 billion in additional Barnett funding for the Scottish government.
Sunak said: “The UK Government has protected millions of jobs and livelihoods across Scotland – and the strength and stability of our economic union will ensure we bounce back from this pandemic together.
“This Budget will ensure the people of Scotland continue to be supported through our Plan for Jobs, committing more than a billion pounds in extra investment and funding to help fuel the UK’s recovery.”
Here is a run-down of the measures that will have an impact on Scotland's economy:
Barnett bugle
An extra £1.2 bllion for Scottish government to decide what to spend on. This is on top of £9.7 billion extra in the past year for pandemic support.
Going green in Aberdeen
A £27 million investment in the oil industry to fund a renewables strategy to potentially create of almost 13,000 jobs in the north east. There is also a further £5 million for the Global Underwater Hub to ensure the UK’s underwater sector grows alongside the global subsea market.
Holiday at home
Extension to the VAT reduction for the tourism and hospitality sectors which should help as travel restrictions are lifted.
Growth in the regions
Accelerated funding for the Ayrshire, Argyll and Bute, and Falkirk Growth Deals. The money will be spent over ten years instead of 15 boosting the growth plans for the regions.
Levelling up fund extended to Scotland
The £4.8 billion Levelling Up has been extended to devolved governments allowing Whitehall to bypass Holyrood and go direct to Scottish councils with funding. This makes it a “power grab” the SNP say and a constitutional hotspot.
Fuel duty
Fuel duty will be also frozen for the 11th consecutive year, while alcohol duties will be frozen across the board – only the third time in 20 years, saving drinkers £1.7 billion over the coming years. Atypical bottle of Scotch whisky 30p cheaper compared to the planned rises, and giving a £450 million boost to distillers who are fighting 25 per cent import levies in the USA.
Freeports or Greenports
As part of the aim to maintain Scotland as a premier destination for trade and investment and level up the whole of the UK, the Government continues to work with the Scottish Government to establish at least one Freeport in Scotland.
Business and jobs support
Over £3.4 billion of loans provided to more than 90,000 through the pandemic. Furlough extended until the end of September, with employees will continuing to receive 80 per cent of their salary for hours not worked.
