Chancellor urged to increase funding for homes and infrastructure

The UK Spring Budget must increase capital funding to ensure Scottish Ministers can deliver the homes and infrastructure Scotland needs, Deputy First Minister and Finance Secretary Shona Robison has said.

Speaking ahead of the Chancellor’s statement today [Wednesday], the Finance Secretary called on him to use any headroom available to increase funding for capital and public services.

Ms Robison said:

“Today the Chancellor must not repeat the mistakes of the Autumn Statement – where £27 billion of fiscal headroom was used to fund tax cuts – and instead prioritise the investment needed for Scotland’s people and public services.

“Key to that is funding for infrastructure. We’ve already committed £6.3 billion of capital spending as part of the 2024-25 Scottish Budget, underpinning high-quality public services, creating jobs and supporting the economy. However, we are expecting a real-terms cut to our UK capital funding of almost 10 per cent over five years, totalling around £1.6 billion – enough to build a large hospital. Likewise our Financial Transactions budget – key to delivering affordable housing – has been cut by 62%.

“With the UK now in recession, capital investment to kickstart economic activity is needed now more than ever. Infrastructure is vital for jobs, economic growth and the path to net zero. That’s why I am urging the Chancellor to deliver the capital funding Scotland needs.”