£350m budget boost to Scotland a ‘major opportunity’

The additional Barnett formula money has been widely welcomed, and while the SNP said the cash did little to assuage worries over Brexit, or offset the long term effects of Westminster-imposed austerity cuts, business leaders said the fresh injection offered opportunities if it can be allocated wisely.

In his Budget speech, Chancellor Philip Hammond told the House of Commons that the additional funding demonstrated that “we are stronger together in this great United Kingdom”.

The Treasury said the Scottish government would see its resource budget boosted by £260 million over the next three years, and its capital budget by £90 million over the period to 2021.

It said the money would be in addition to the £800m of additional Barnett funds announced by the chancellor in last year’s Autumn Statement.

Hailing the bolstered Barnett funding as a “major opportunity” to grow the Scottish economy, Liz Cameron, chief executive of Scottish Chambers of Commerce, said: This additional funding needs to be invested wisely. The Scottish Government could use some of these resources to support businesses in the social care sector, to invest in the training and recruitment of more home care workers, and to support new businesses to be set up in this area.

“The Scottish Government could also consider using this funding towards developing and upskilling existing employees, particularly for those over the age of 25, to help fill the major skills gaps. We must also develop the skills of our unemployed and underemployed and ensure that these talents can make an effective contribution to our economy in areas such as digital, engineering, and many others.”

But down-playing the significance of the handout, Scottish finance secretary, Derek Mackay, said: “The real elephant in the room in this budget was Brexit. There was no mention of the UK government’s plans to protect and grow the UK economy as the prime minister gets ready to trigger Article 50.

“This is simply not acceptable. Brexit is a real threat to people across Scotland in so many ways. The chancellor must tell us his plans.”

Mr Hammond had attempted to head-off such criticism, saying his budget would “equip our economy and our people for the future - while dealing with the challenges we face as one nation”.

He added: “Benefitting from £350m of extra investment, the Scottish government can take further steps to strengthen Scotland’s economy and make sure that Scottish people, of all background and no matter where they live, feel the benefits of economic growth.”