The UK Treasury has released a breakdown of what the Chancellor’s spending review means for Scotland.
Given the massive amounts being thrown at fighting the coronavirus pandemic, as well as increasing overall NHS spending by £3billion to back up normal procedures, there was bound to be an increase in the Scottish budget.
Holyrood's annual budget, decided by Scottish Ministers, will be set in January taking into account the extra covid funding.
But the chancellor insisted the money goes further than than dealing with the pandemic.
Chancellor Rishi Sunak said: “This Spending Review will help people in every corner of Scotland. It will provide billions of pounds to fight coronavirus, deliver the peoples’ priorities and drive the UK’s recovery
“The Treasury is, has been, and will always be the Treasury for the whole of the United Kingdom and this is a Spending Review for the whole of the United Kingdom.”
From the Treasury analysis here are the key points for Scotland:
- Extra funding of £2.4 billion for Scotland in 2021 with £1.3 billion related directly to covid spending. This is double the £1.2 billion funding provided for in the 2019 spending round.
- The figure is in addition to the £8.2 billion of advance spending guaranteed to the Scottish Government in 2021 in the face of the coronavirus and its impact on the economy.
- An £11 million acceleration of City and Growth Deal funds over 10 years, rather than 15 years. Releasing the funding quicker means Tay Cities will receive an additional £6.3 million each year, the "Borderlands" gets an extra £2.1 million, Moray receives an extra £1.1 million and the Scottish Islands an additional £1.7 million
Other notables are the knock-on benefits from the England-only elements of £15 billion for Test and Trace programme and £1.3 million for a global underwater hub in Aberdeen to develop subsea engineering expertise.
The Treasury also highlighted investment in broadband rollout across the UK, investment in green industries, carbon capture and free ports.
Separately, world-class Scottish universities will also be able to access a £14.6 billion UK-wide research and development fund.
Defence spending will directly benefit shipbuilding jobs for 13 warships on order from the Clyde.
The Treasury also confirmed funding for apprenticeships in the Kickstart scheme offering employers up to £2,000 for every new apprentice they hire.
The UK Government is to maintain funding by providing £570 million to support farmers and £14 million to support fisheries in Scotland.
Investment from EU Structural Funds is increasing in 21-22 compared to this financial year as preparations are made for the introduction of the UK Shared Prosperity Fund.
There is a row over how the funding will be controlled with the SNP accusing the UK government of a “power grab” from Holyrood Ministers.
Scottish Secretary Alister Jack did nothing to dampen that when he emphasised working with local authorities on the new funding, suggesting the Scottish government could be bypassed.
Jack said: “The UK Government pledged to bring funding decisions back from Brussels, and our plans for a new UK Shared Prosperity Fund will deliver on this promise. Communities across the UK have been hit hard by Covid, so I welcome the Chancellor’s announcement today of £220 million in additional funding in the coming financial year.
"This will be delivered by the UK Government across the UK, working in partnership with local authorities and communities.”
“The UK Government’s Spending Review delivers for all parts of the UK at this challenging time. Never before has the strength of the Union, and the role of the UK Treasury, been more important."
