logo
Murray asks who Scots voters ‘trust to spend' £9.1bn rise in funding

Murray asks who Scots voters ‘trust to spend' £9.1bn rise in funding

Chancellor Rachel Reeves set out her spending plans for the next three years on Wednesday, pledging to increase funding for housing and the NHS south of the border – which will have an impact on Scotland.
She also announced development funding for the long-awaited Acorn carbon capture and storage facility in Aberdeenshire, as well as the reinstatement of up to £750 million to build the UK's most powerful supercomputer at Edinburgh University.
According to the Treasury, the Scottish Government will see an increase of £9.1 billion over the next three years.
In a briefing for Scottish journalists, Chief Secretary to the Treasury Darren Jones said on average, the increase will mean £2.9 billion extra for Scotland each year – £2.4 billion of which will be revenue spending up to 2028-29 and around £510 million in capital for the slightly longer period of four years.
The funding will take effect from April next year, just weeks before Scots go to the polls in the Holyrood election.
In the same briefing, Scottish Secretary Ian Murray asked: 'The question then becomes, who do you trust to spend that?
'The record of the SNP Government of the last 18 years has not been beneficial in terms of how they would spend it.
'In fact, I think there'll be broad support for the view that the £4.9 billion that they got in the budget last year has not been spent wisely either.'
He said Wednesday's spending review was 'great' for Scotland.
One of the key announcements was confirmation of development funding for the Acorn project.
The project – which will store carbon emissions from across Scotland under the North Sea – was repeatedly overlooked by successive UK governments for funding.
But asked for clarity on how much cash the project will receive, Mr Jones was unable to say.
The 136-page document also said that while the Government supports Acorn, 'a final investment decision will be taken later this Parliament, subject to project readiness and affordability'.
Mr Murray said: 'We're working with the Acorn partners and have been for some time now about what they need for the development of it and that's what this commitment is for.'
The SNP pushed for more detail on Acorn following the announcement.
Accusing successive UK governments of having 'dragged their heels' on the project, Westminster leader Stephen Flynn said: 'The glaring omission in today's announcement was any detail on the scale of funding and the timescales for delivery, which stands in stark contrast to the £22 billion commitment the Labour Government has already given to carbon capture projects in England.
'Westminster has had 20 years to hammer out the detail on Scottish carbon capture, so it must now deliver meaningful funding and concrete support at pace.'
Scottish Finance Secretary Shona Robison said the overall funding increase does not match that of Whitehall departments, claiming Scotland has missed out on more than £1 billion.
'Today's settlement for Scotland is particularly disappointing, with real-terms growth of 0.8% a year for our overall block grant, which is lower than the average for UK departments,' she said.
'Had our resource funding for day-to-day priorities grown in line with the UK Government's overall spending, we would have £1.1 billion more to spend on our priorities over the next three years. In effect, Scotland has been short-changed by more than £1 billion pounds.
'It is also disappointing that despite apparent briefing to media in advance, we are still awaiting clarity on funding for the vital Acorn project in the north-east of Scotland.
'We made extensive representations to the UK Government on our priorities for the spending review, including calls for an end to spending that bypasses devolution, but there has been limited opportunity to engage with them.
'It appears that the continuation of local growth funding – which fails to match the European Structural Funds it was supposed to replace – will come directly from Whitehall, yet again bypassing devolved governments.'
The Scottish Government will respond to the announcement in the medium-term financial strategy on June 25, the Finance Secretary said.
But Scottish Labour leader Anas Sarwar praised the spending review as 'game-changing', adding: 'The plans set out today will bring billions of pounds of investment to Scotland, on top of the record budget settlement delivered in the budget.
'From the Acorn Project to a national supercomputer in Edinburgh to our defence industry, this Labour Government is investing in Scotland's future while the SNP carps from the sidelines.'
Scottish Conservative finance spokesman Craig Hoy described the spending review as a 'spend-now-tax-later statement' which will result in the Chancellor 'almost certainly' having to raise taxes.

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Badenoch to call for end to oil and gas windfall tax and ban on new licences
Badenoch to call for end to oil and gas windfall tax and ban on new licences

The Herald Scotland

time16 minutes ago

  • The Herald Scotland

Badenoch to call for end to oil and gas windfall tax and ban on new licences

Designed to fund interventions to bring down household bills, the policy has been criticised by those in the industry. Speaking at the Scottish Conservative conference in Edinburgh on Friday, Mrs Badenoch is expected to tout the oil and gas sector, accusing the UK Government of 'killing' it, claiming 'renewing our party and our country means standing up for our oil and gas industry'. She will add: 'When the oil and gas windfall tax, the energy profits levy, was brought in, the oil price was near a historic high, at the exact time as energy bills for the British people were sky-rocketing. 'But there is no longer a windfall to tax. It has long gone. And the longer this regressive tax on one of our most successful industries remains, the more damaging it becomes. 'Labour have extended and increased this tax. They are killing this industry.' If the measure remains in place to 2030 as intended, Mrs Badenoch will say 'there will be no industry left to tax'. She will add: 'So, today, I say enough. Labour must remove the energy profits levy. Labour must speed up the process of replacing it with a system that rewards success and incentivises investment. 'Because we shouldn't have this energy profits levy at all. 'We must scrap the ban on new licences. 'We must overturn the ban on supporting oil and gas technology exports. Kemi Badenoch will say the energy profits levy should end (PA) 'And we must champion our own industry. 'We must let this great British, great Scottish industry thrive, grow and create jobs – ensuring our energy security for generations to come, driving growth and making this country richer in the process.' Mrs Badenoch will address her first Scottish party conference as leader on Friday while her counterpart north of the border Russell Findlay will deliver his inaugural address on Saturday. Responding to Mrs Badenoch, Simon Francis of the End Fuel Poverty Coalition said her comments were 'out of touch', adding: 'Even with the windfall tax in place, the energy industry made over £115 billion in profits in 2024 alone. 'Meanwhile, average household energy bills remain hundreds and hundreds of pounds higher than they were before the energy crisis started. 'While the Government is right to be consulting on reform of the windfall tax, maintaining a profits levy could help fund home upgrades and a social tariff which would bring down energy bills for the most vulnerable in society.' SNP MSP Kevin Stewart said: 'The Tories wrecked our economy, presided over soaring household bills and ripped Scotland from the EU against our will. 'And now they're lurching further to the right as they haemorrhage votes to Nigel Farage. 'This weekend will be an important reminder of how Westminster has failed Scotland. Only the SNP is offering hope and a brighter future as an independent nation.' Scottish Labour deputy leader Jackie Baillie said: 'While the Tories and SNP let energy workers down by failing to plan for the future, Scottish Labour is committed to taking action towards reaching net zero, creating jobs and cutting energy bills. 'The Tories are on the side of oil and gas giants rather than working Scots, but Scottish Labour will work with the UK Government and use devolved powers to deliver a just transition for the industry. 'With Kemi Badenoch desperately attempting to rally the few remaining Scottish Tories, it seems like it won't be long until they can fit all of their MSPs in a single taxi.'

Captain Kemi needs ‘an army' but business not yet keen to follow her over the top
Captain Kemi needs ‘an army' but business not yet keen to follow her over the top

Telegraph

time35 minutes ago

  • Telegraph

Captain Kemi needs ‘an army' but business not yet keen to follow her over the top

There was not much headroom, fiscal or otherwise, as the Tory leader spoke on the economy in the cramped basement of a City hotel. The ceiling was low but Kemi Badenoch's hopes were high as she addressed a conference of bankers who seemed under-enthused by the Chancellor's spending review. Tax Freedom Day, the point of the year when we stop working for the Exchequer, had just dawned, six days later than last year, and there was little sign of relief. The Institute for Fiscal Studies warned that Rachel Reeves was a 'gnat's whisker' away from having to hike taxes and most gnats are asking for the No 1 clippers these days. Add the grim news of GDP falling by 0.3 per cent in April, and the Chancellor's breakfast media round had been like someone trying to sing Good Vibrations to the tune of Beethoven's Funeral March. Speaking from a hospital surrounded by diagnostic equipment (all wisely unplugged to avoid images of flatlining) Reeves insisted she is 'determined' to deliver growth and that GDP is 'volatile'. This is the same Reeves who demanded an emergency Budget in 2022, when GDP fell by 0.1 per cent on the Tory watch. It was not a bad time, therefore, for a Conservative to remind those in the City who their friends are. Badenoch had come to play FTSE with financiers, but she began with a nostra culpa. She admitted the Tories had left a ropey economy – blame Covid, blame Putin, blame the Treasury, don't blame me – 'but it was not this bad'. Productivity, she added, was 'stuck in first gear' and London was experiencing the greatest exodus of wealth of any city save Moscow. She pronounced it the American way to rhyme with cow. Labour don't 'get' business because hardly any of them have a background in it, she added, which may be true but only one of the Beach Boys knew how to surf. Reform, she contended, was running a scam. 'No one is making the argument for business any more except me and my party,' she said. 'Business is a good, in and of itself, and it pays for everything.' Especially, she hoped, at that night's Tory donors' summer party. Their tummies suitably tickled, Badenoch then returned to bashing the Government, saying that borrowing is so high there is a 'significant risk of a death spiral' and that Labour is pessimistically pursuing a path of managed decline, exacerbated by a compliance culture that strangles innovation. So far so punchy, but what would she do better? Badenoch's shirt cuffs were unbuttoned but she had little up her sleeves. Her opposition to VAT on school fees was reprised and she promised to 'reverse changes to APR and BPR' (agricultural and business property relief), thus giving CPR to the economy. Beyond that, she had nothing. It is, to be fair, early in the parliament for policy. What she most wants now are allies ('Quite frankly, we need an army.') 'I'm on your side,' she told them, 'but I need you to be on mine too. You can't sit back and hope that someone else is coming along to fix this. You need to speak up. Don't just wait for other politicians to do it. You need to get on the pitch too.' Building to her conclusion with a plea for ideas, Captain Kemi hit a poetic, if metrically flawed, note. 'Back us, put your name to the cause,' she said, 'for we're not going to turn the country around with quiet applause.' She then left the stage to quiet applause. The pin-striped army liked her tone, but they are not quite ready to follow her over the top.

Millions for Wales' rail funding is 'underwhelming'
Millions for Wales' rail funding is 'underwhelming'

Wales Online

time38 minutes ago

  • Wales Online

Millions for Wales' rail funding is 'underwhelming'

Millions for Wales' rail funding is 'underwhelming' A row over Rachel Reeves' words in her spending review is overshadowing the UK Government's big announcement Chancellor of the Exchequer Rachel Reeves delivers her Government's spending review to MPs in the House of Commons (Image: PA ) The UK Government's announcement that £445m of funding will come to Wales is "underwhelming" and not enough to make up for years of underfunding, experts have said. Chancellor Rachel Reeves made her long-awaited spending review statement in the House of Commons on Wednesday, June 11. As part of it, she declared: "Following representations from my Right Honourable Friend the Welsh secretary, the First Minister for Wales, and Welsh Labour MPs I am pleased to announce £445m for railways in Wales over 10 years including new funding for Padeswood sidings and Cardiff West junction." ‌ The paperwork associated with the statement said that would mean "£300 million for rail investment in Wales, including for the Burns Review stations, North Wales Level Crossing, Padeswood Sidings and Cardiff West junction." For our free daily briefing on the biggest issues facing the nation, sign up to the Wales Matters newsletter here ‌ However, the chancellor's words led to confusion, because UK Government then sought to row back on the chancellor's words, saying the funding wasn't over 10 years at all. If the money were for over a decade-long period, it would be considerably less good news for Wales than Labour had been briefing especially given the historic underfunding for rail Wales has had. The Treasury and Wales Office explained to journalists in a subsequent briefing the money was split into different parts, £300m will be spent by the UK Government on heavy rail - so things like the new stations and sidings mentioned above and rail improvements. The Welsh Government will get £48m for the Core Valley Lines and the remaining £97m would be for developing future schemes. Article continues below They explained that while the "bulk" of the total sum would be spent in this next three year period, only the £97m development funding would be for a longer period of 10 years because it covers the upcoming spending review, and the next from 2030. Despite that, confusion continued to reign, which led to a spat in the Senedd between Mark Drakeford and Rhun ap Iorwerth - which you can read here. The experts at Wales Governance Centre gave their response to the chancellor's comments saying: "In today's statement, the Chancellor announced that this £445m would be spread over ten years: six years longer than the period of the spending review period itself. It includes £48m for enhancements to the Core Valley lines over four years, responsibility for which is devolved to the Welsh Government. ‌ "In the spending review documentation, there are specific mentions of the Borderlands Line and the Cardiff to Bristol line. Beyond this, there is no substantial detail on the profile of this funding in each year of the spending review period. "Given the rail enhancement spending currently committed to projects across England, this level of funding would fall well below a population share for Wales over the next decade. Any suggestion that this funding in any way compensates Wales for the loss incurred from HS2 is obviously unsustainable. It does not substantially change the overall picture of underfunding of Welsh rail infrastructure." In February 2025, the Welsh Government estimated that the loss in consequentials from HS2 being classified as an England and Wales project (rather than an England-only project) was £431m, from 2016-17 up to and including 2025-26. ‌ "However, Wales Governance Centre say it now estimates that the total loss from HS2 between 2016-17 and 2029-30 now stands at approximately £845m. "Over the course of the next four years, Wales will lose more than £100 million in capital funding every year because of HS2's designation as an England and Wales project, and the cumulative loss will continue to grow significantly at future spending reviews. We show our workings in the attached table," their analysis reads. "The Welsh Government has apparently expended significant political capital in pushing the case for rail infrastructure investment in Wales. In that context, the announcements today feel underwhelming. ‌ "Furthermore, by leaving the existing system of funding rail infrastructure in place, it will leave Wales again at the behest of future governments (of whatever political colour) and risk further entrenching rail underfunding at future spending reviews." Their analysis further consequentials deriving from NHS and schools spending in England equate to around 91% of the additional funding announced for the Welsh Government in 2028-29. Passing on these consequentials to equivalent services in Wales would still leave NHS funding growing at below its long run historical average (3.6%) but this would still see other services facing tight budgets over coming years, leaving them – at best – flat in real terms ‌ "Following the pattern of recent years, the funding is also frontloaded, with faster growth in spending in 2026-27 followed by leaner budgets in 2027-28 and 2028-29. "This is good news for the current Cabinet Secretary for Finance, who may be able to avoid having to cut services in next year's budget, which will need to pass through the Senedd a matter of months before the election," Guto Ifan's analysis says. Wales' finance minister Mark Drakeford told BBC Radio Wales that the spending review was good for Wales. He said the Welsh Government had got everything it wanted from the UK Government and it had only asked for funding for things it could deliver in terms of resources and staff. ‌ He said claims by opposition parties that funding would be evenly split over a decade was an "elementary error". He said he had repeatedly corrected assertions that it would be divided, but they kept quoting it. "Despite having that error corrected a number of times, they continued to cling to it. The error was to assume the money would be evenly divided over that 10 year period, whereas in fact, £350m of it, the vast bulk of it, will happen in the next three years. "What the chancellor was explaining was that on top of the £350m there is £95m associated with a ten-year investment strategy. It's not £45m a year, as the leader of Plaid Cymru kept asserting, despite having had it explained to him, it's actually £350m over the next three years and there will be opportunities in subsequent spending reviews to add to that," he said. Article continues below

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into the world of global news and events? Download our app today from your preferred app store and start exploring.
app-storeplay-store