WIREDGOV

Finance Secretary offers an alternative to austerity.

Public spending will be maintained in an independent Scotland, John Swinney said today as he set out the Scottish Government’s alternative proposals to continued Westminster cuts.

Independence would provide an opportunity to set different priorities for public spending in Scotland, with a focus on growth and tackling inequality whilst continuing to restore the public finances to health.

Based on current forecasts, the Scottish Government would seek to provide £1.2 billion of additional resources in 2017-18 and £2.4 billion more in additional resources in 2018-19 to invest in Scotland’s economy, offering a sustainable and credible alternative to austerity.

This is in contrast to current plans from Westminster which will see a further £25 billion in spending cuts across the UK after the 2015 General Election – approximately £2.5 billion of which could occur in Scotland.

Reviewing the progress of the Dundee Waterfront Regeneration where public support from Scottish Enterprise and Dundee City Council is helping to create up to 9000 jobs, Finance Secretary John Swinney said:

“Scotland is one of the wealthiest countries in the world, and we will start life as an independent nation with huge economic potential.

“Future Scottish governments would have the opportunity to match their spending and tax policies to the preferences and priorities of the people of Scotland.

“With the powers of independence we can ensure we use that wealth to boost the economy, create jobs and support public spending whilst reducing the deficit through faster economic growth and increased revenues, not spending cuts.

“In the first year of an independent Scotland, our balance sheet is forecast to broadly match the UK’s and public sector debt will be falling as a share of GDP. Scotland will therefore start life with the opportunity to do things differently.

“This means we could, within an overall commitment to fiscal responsibility, provide a credible and sustainable alternative to the current UK Government’s fiscal plan and place a greater focus on supporting growth and tackling inequality.

“We could prioritise our choices in many ways. For example, investment in infrastructure - every £100 million in capital investment is estimated to support 1,400 jobs across Scotland.

“Supporting the delivery of our transformational childcare policies would also have positive impacts for the Scottish economy. For example, if Scottish female labour market activity rates increased to Swedish levels, it could ultimately increase output by an estimated £2.2 billion.

“The investment could also provide greater support to the most vulnerable in our society. An additional 30,000 children in Scotland have been pushed into poverty in the last year, in part due to the UK Government’s welfare changes.

“With the UK Government set to implement £25 billion of spending cuts after the next election the ability to manage our economy and public finances in the best interests of Scotland is one of the key benefits independence can bring.”