Swinney publishes Scottish Spending Review

Thursday September 22nd, 2011

Scottish Finance Secretary John Swinney has announced over three quarters of a billion pounds will be transferred from resource expenditure into the capital investment programme to support economic recovery.

Announcing the publication of the Scottish Spending Review 2011, Mr Swinney confirmed that despite a 36% real terms cut to Scotland’s capital budget in the UK spending review, Government-supported investment will grow over the next three years.

The Finance Secretary said that there will also be a shift towards preventative spending, focusing on earlier intervention.

Mr Swinney said: “Between 2010-11 and 2014-15, Scotland faces a real terms cut of 12.3% – £3.7bn – including a real terms cut of 36.7% to our capital budget. Against this stark backdrop, we will steer a distinct course and make the very best use of the constrained resources available to us. Our Government Economic Strategy focuses on accelerating economic recovery and the Spending Review prioritises capital investment as a key driver to create new jobs and sustain long-term growth.

“We are switching over three quarters of a billion pounds from resource expenditure to support our capital programme up to 2014-15. We are taking forward a £2.5bn pipeline of projects using the non-profit distributing model, we are maximising the use of Network Rail’s Regulatory Asset Base to fund new rail projects and we will deliver 30,000 new affordable homes over this Parliament.

“The Spending Review also marks a decisive shift towards preventative spending, focusing on preventing problems by intervening earlier, delivering better outcomes and value for money. Over the next three years, through the joint priorities work of national and local government, preventative spending initiatives will be boosted by a total of over £500m. Our focus will be on supporting adult social care, early years and tackling re-offending – with specific funding that will only be available for joint working across institutional boundaries and sectors.”

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