FM: Chancellor must invest in opportunity

A joint call for investment has been issued to the Chancellor on the eve of the UK Budget from Scottish Government and Scottish Chambers of Commerce.

Speaking to business leaders at a reception with the Scottish Chambers of Commerce on Tuesday 29 October, First Minister John Swinney said:

“My Government is committed to growing the economy to generate the wealth to invest in our public services and eradicate child poverty. We want to use that investment to create a partnership between government and business that will make the most of Scotland’s many economic opportunities.

“It takes political willpower to adapt and evolve our economies and grow thriving societies in all four nations - something the Chancellor can signal by including steps to advance the Acorn carbon capture and storage project in the UK Budget, which would provide new opportunities for workers in the oil and gas sector in Grangemouth and in other parts of Scotland.

“The Office for Budget Responsibility highlighted recently the potential for public investment to deliver permanent improvements in the economy. It is welcome that my calls for the Chancellor to amend her fiscal rules have been heard, with indications last week that there will be scope for greater investment.

“The Chancellor has the chance to choose to deliver a UK Budget that invests in our public services and supports the entrepreneurial spirit displayed in Scotland’s business sector. With these new rules in place the Chancellor must use the fiscal headroom they create to deliver a Budget that immediately and significantly enhances Scotland’s resource and capital funding, enabling us to invest more in our public services and take forward the vital infrastructure projects that support economic growth, net zero, and action to tackle child poverty.”

Scottish Chambers of Commerce Chief Executive Dr Liz Cameron CBE said:

“Our budget focus is on growth, investment and competitiveness. That means investing in skills, technology and infrastructure, and equipping the workforce for tomorrow’s challenges. 

“The Chancellor’s actions and the message they send will directly impact business confidence and investment at a time when we need to create positive momentum. We hope that our calls to support business have been listened to and not ignored.” 

Background

The Office for Budget Responsibility’s conclusions on impact on GDP of a permanent uplift in capital investment can be found on page 23 of Discussion paper No.5: Public investment and potential output (obr.uk)

UK Autumn Budget: Letter to UK Government - gov.scot (www.gov.scot)