Extra cash for housing and transport in Scottish budget

Plans to invest an extra £97 million in housing and an additional £72 million in transport projects over the next three years are contained in Scotland's budget, approved yesterday in a Holyrood vote.

Swinney: set out spending plans
Swinney: set out spending plans
MSPs voted by 70 to 52 to approve the Scottish government’s £30 billion Budget Bill, which sets out the administration’s spending plans over the next three years.

Earlier, Scotland’s finance secretary John Swinney has confirmed an extra £382 million of capital investment between 2012 and 2015, including £72 million of funding for transport projects and £97 million of investment for housing.  

The Scottish government said that the extra funding had been allocated to Scotland through Barnett formula "consequentials". This system sees increases in public expenditure in England lead to changes in public expenditure in Scotland, Wales and Northern Ireland that are proportionate to population in the different areas.

Since last September, chancellor George Osborne has announced spending decisions that have generated Barnett consequentials for Scotland, the Scottish government said.

Swinney said that the additional funding for housing would support affordable housing supply and would help expand shared equity schemes.

He added that the £72 million of extra transport investment would pay for a "number of key road projects", including the A75 Dunragit Bypass, the A737 Dairy Bypass and design works for the dualling of the A9.

Swinney said: "I am now allocating an additional £382 million of capital investment in new transport, housing and digital projects.

"That money will build new roads, deliver new homes and upgrade to high-speed broadband, targeted in rural areas."

He said that the Barnett consequentials "are welcome additional resources, although they are of course small in comparison to the scale of cuts we face this year and in the years ahead".

Budget (Scotland) Bill is available here.

jamie.carpenter@haymarket.com


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