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Infrastructure investment boosting growth.

Scotland’s economy is currently benefiting from a £3.24 billion boost through investment in schools, hospitals, roads and other infrastructure projects Finance Secretary John Swinney confirmed today.

Infrastructure investment next year will rise to £4.17 billion, with spending plans to be debated in Parliament tomorrow, at the start of the 2014-15 Budget Bill process.

Mr Swinney was speaking on a visit to City of Glasgow College’s £228 million new super campus.

The College, which consists of two city centre campuses, is targeted to create 170 new jobs as well as providing a minimum of 40 modern apprenticeships over the period of the contract.

Mr Swinney said:

“Developments like the City of Glasgow super campus show how our policies on infrastructure investment are supporting Scotland’s economy, creating more jobs and opportunities for the people of Scotland.

“The Scottish Government is on the right track and Scotland is reaping the benefits.

“This is in stark contrast to the UK Government’s relentless austerity regime. To create jobs and growth we need to invest in our schools, hospitals and roads, as this Government is doing, with projects currently underway in Scotland amounting to £3.24 billion worth of investment.

“A strong focus on infrastructure is a key plank of the Budget Bill, which I am taking forward in Parliament tomorrow. Despite the UK Government’s decision to cut the Scottish Government’s discretionary spending power by more than 11 per cent in real terms over five years, with our capital budget being reduced by almost 27 per cent in real terms, our plans include securing £8 billion of infrastructure investment over the next two years.

“The budget also confirms funding for childcare, free school meals, business rates and bedroom tax, helping ensure Scotland is the best place for our children to grow up, that we offer the most competitive environment for business within the UK and that people in Scotland are protected from the worst effects of Westminster’s welfare cuts.”

During his visit Mr Swinney toured the Riverside campus, one of the College’s two sites that will serve around 1,200 staff and 40,000 students.

The College was created following the successful merger in September 2010 of Glasgow's Nautical, Central and Metropolitan colleges.

The College has used the Scottish Futures Trust’s Non Profit Distributing (NPD) financing model, which ensures that private sector returns are capped, that there is no dividend bearing equity, and any surplus is directed in favour of the public sector.

Principal Paul Little said: “The college already puts some £32m into Glasgow’s economy each year, and the construction of this magnificent twin site campus is an example of the college playing its part of One Glasgow and actively investing in the regeneration of two key areas of Glasgow.

"The college is a powerhouse of skills development, located in the very heart of the city centre, a part of Glasgow which the Chamber of Commerce has recently re-prioritised as an economic hub and a driver of economic development.”

Notes to editors

The Budget Bill was published on Friday, January 17, 2014. The stage one Budget Bill debate will take place in Parliament on Wednesday, January 22, 2014.

The Budget Bill confirms funding in 2014-15 to support the Scottish Government’s recent commitments of :

£55m over two years to expand the provision of free school meals;

£59m over two years to provide additional childcare places – taking the total additional funding for childcare to around £250m over two years

£77m over two years to further enhance the competitiveness of the Scotland’s business rates regime; and

£20m to offer further help to those affected by the UK Government’s bedroom tax in 2014-15

Taking this commitments into account to support the economy the Budget Bill 2014-15 published last week and the spending plans for 2015-16 published in September 2013 will:

Secure £8bn of infrastructure investment over the next two years

Provide £190m over two years to increase early learning and childcare to 600 hours

Invest more than £1.3 billion in affordable housing

Maintain the most competitive set of business rates reliefs in the UK, worth around £570 million a year

Expand the Small Business Bonus Scheme to allow and estimated additional 4,000 premises to benefit

Cap the increase in next year’s business rates poundage at 2 per cent

To help our people and communities to thrive the Scottish Government will:

Provide at least £68m in each of the next two years to mitigate the impact of UK welfare cuts plus £20m this year and again in 2014-15 to limit the impact of the bedroom tax

Provide a £114 million package for young people over two years, including giving every one of Scotland’s P1 to P3 children the option of a free meal in school

Invest £522m in colleges next year rising to £526m in 2015-16

Maintain a council tax freeze across Scotland

Continue its social wage commitments including free prescriptions, concessionary travel, free personal care and the Scottish living wage

To support Public Services the Scottish Government will:

Protect the NHS budget

Protect the Local Government budget

Continue support for the three Change Funds, driving a shift to more preventative approaches

Provide £120m funding in 2015-16 to assist health and social care integration