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Insider UK
Business
John Glover

Scottish Government hands Ferguson Marine another £35m to improve business processes

The Scottish Government is planning to spend £35m on Ferguson Marine in order to improve its business processes and outcomes.

A datasheet produced alongside the main Scottish Budget revealed the detail of the new spending plans.

The latest lot of money for the nationalised shipbuilder would be used to complete the build out of Vessels 801 and 802 - the new ferries overdue for delivery to Caledonian MacBrayne.

Documents also revealed that the Scottish Government is investing £27.1m to develop a national procurement strategy to deliver its schemes to help businesses, such as the Community Wealth Building, Grow Local and its green economic recovery plans.

The funding is aimed at establishing procurement capability to support the implementation of the National Care Service Delivery and a new property strategy delivering “net zero inclusive economic impact and best stewardship of public sector property in Scotland”.

The delivery of new contracts to support the public sector wide eCommerce Shared Service.

The government explained that by developing this strategy it would help deliver savings and reduce procurement and legal risks for the private and third sector.

It claimed this would improve accessibility to public contracts for Scottish businesses and SMEs, enabling faster payment of invoices and reducing administration costs.

The Scottish Government also gave more detail on plans to increase its “ambition for internalisation of the economy”, supporting its three outcomes for inward investment, trade and capital. It has invested £17.7m to help achieve this, with the hope of creating jobs and resulting in higher wages.

The government will also continue to the cultivation of a “culture of innovation, entrepreneurship and global ambition among Scotland's early stage businesses, through an investment of £15.3m.

This includes increasing capital expenditure on aerospace research and development by £1m, with a further £1m going to Space Hub Sutherland.

Following the outcome of the capital spending review, the Budget will have a focus on supporting Scotland’s low carbon economy ambitions, which includes its Green Jobs Fund, which will see £30m invested over five years into the supply chain, a new Low Carbon Manufacturing Fund, which will be £26m over five years, and its Clyde Mission Low Carbon Heating, which will be £25m over five years.

The Budget allocates £13.4m to support the manufacturing sector and continued business engagement, including further funding to progress the National Manufacturing Institute Scotland and delivery of the Advancing Manufacturing Challenge Fund to spread the reach of advanced manufacturing.

This Budget also included £13m in funding to support the delivery of statutory functions for ministerial oversight of the planning system and international environmental obligations.

A further £233.2m was set aside for the Cities Investment & Strategy, which current funds activity related to City Region and Growth Deals that have been agreed, as well as making provision for future deals.

South of Scotland Enterprise in particular has been handed an increased budget of £37m to help it deliver the new national strategy for economic transformation, in collaboration with partners.

The documents also revealed the Scottish Government spent £33m increasing the number of civil servants working at its international offices.

In its Berlin offices, spending increased by 8.1%, while spending on its Dublin offices rose 3.9%, with London at 4.9% and a 5% increase for its Brussels office.

According to the documents, the Scottish Government spent nearly £600,000 on a new office in Copenhagen.

It also increased spending on the Paris office by 16.6%, along with 9.7% for its Canada office and 1.6% on its China office. Its US office, meanwhile, saw a 2.7% decrease in spending.

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