Independence investment plan
3 Jul 2014 03:50 PM
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.”