Scottish Government
Printable version E-mail this to a friend

FM urges Chancellor to take Budget road to recovery

Major motorway improvement project gets underway

First Minister Alex Salmond has urged the UK Government to take a new approach in the Budget to secure recovery through additional capital investment.

The First Minister made the call as he launched a £500 million investment in one of Scotland’s largest transport infrastructure projects which will deliver improvements in the M8, M73 and M74 and create 1,000 jobs. This Non Profit Distributing (NPD) project 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.

Speaking at the ground-breaking event, the First Minister said:

“As well as improving connections, the £500 million infrastructure investment we are making will deliver 1,000 jobs and boost the economy. In his Budget, George Osborne must also take the road to recovery by delivering additional capital investment.

“While we are seeing promising signs of economic growth, the fact that we are not even half-way through the UK Government’s spending cuts programme with austerity now projected to continue until 2018-19, underlines the failure of the UK Government’s approach to the economy.

“In his final Budget before the referendum George Osborne may be tempted to offer Scotland a series of short-term promises but this will not compensate for the impact of decades of mismanagement of our economy by the UK Government.

“With the limited economic powers available to the Scottish Government we have prioritised vital infrastructure projects like this one, and with future investment in similar projects set to top £8 billion between 2014/15 and 2015/16, we will continue to focus on delivering a faster recovery in Scotland.

“Such actions are paying off with the latest Scottish GDP figures showing Scotland outperforming the UK over the year to Q3 2013 with growth of 2.1 per cent, while Scotland’s labour market continues to outperform the UK as a whole with a lower unemployment rate and higher employment rate. This improvement has been anchored by Scottish Government priority on capital investment spending almost one third more in terms of GDP share than the equivalent UK figure last year. The chancellor should recognise this success and deliver a budget that focuses on real recovery through additional capital investment.

“It is continually frustrating that Scotland’s economy and public services face the consequences of budget decisions made by a government Scotland did not elect. With independence we have the opportunity to address this democratic deficit and build a country that is both prosperous and just.”

Mr Salmond continued:

“Today not only marks a significant milestone in the investment of Scotland’s roads infrastructure, it also lays the foundations of exciting career opportunities for the scores of graduates and apprentices who will be involved in the construction of this ambitious project.

“We are a wealthy and productive country, and by investing in the skills and talents of our young people, they are quite literally building a more prosperous future for themselves and for Scotland.”

William James Haughey, Chairman of Scottish Roads Partnership, said:

“Our aim is to maintain and build on Transport Scotland’s excellence in major infrastructure delivery and network operation, whilst minimising disruption to road users as we deliver this vital project. We are committed to delivering best value for the Scottish economy by engaging the local supply chain and creating local employment opportunities, as well as skills development and training.”

Conor Wells, a graduate who is working on the design of the project with his employer Amey, said:

“The M8 M73 M74 project provides me with an ideal platform to develop my professional capabilities while being involved in a scheme which will have a massive impact on a national scale. This project will allow me to gain invaluable experience at an early stage in my career, giving me essential experience I can carry forward to other projects.”

Notes to editors

The Scottish Government’s second annual progress report of the multi-billion pound Infrastructure Investment Plan (IIP) showed that in 2013, 20 infrastructure projects, worth £400 million, completed construction and are now in use. This includes four health centres, seven schools and three major transport projects. Construction has also completed on a further four infrastructure projects, worth £225 million, which will be available to communities by the end of March 2014.

Finance Secretary John Swinney has written to the Chancellor George Osborne, calling on the UK Government to take a new approach in next week’s budget to secure the recovery through additional capital investment, improved access to finance and no additional cuts to spending.

http://news.scotland.gov.uk/News/Swinney-demands-Chancellor-changes-course-a6d.aspx

For more information on the M8 M73 M74 Motorway Improvements Project, visit the Transport Scotland website http://www.transportscotland.gov.uk/road/projects/m8m73m74

The ICAEW/Grant Thornton UK business confidence monitor published on March 5, 2014 gave Scotland a +38 score which is slightly above the UK average of +37.2, and up near 10 points from +28.5 in the last three months of last year.

In February 2014, the BOS Scotland Purchasing Managers' Index Report showed record levels of business confidence and Scotland. The figures also indicated private sector output expanded for the 17th consecutive month in February. The PMI survey also reported the fastest rise in employment in the survey’s 16-year history, as well as an expansion in new orders in both the services and manufacturing sectors.


Spotlight on women at Serco – Anita’s story