Faced with a reduction from Westminster in capital budgets for 2011-12 of a quarter, Ministers are mitigating this and maintaining continuity of capital investment plans. The 2011-12 Draft Budget proposes major investments to support national infrastructure priorities, including initial work on the new Forth Crossing, investment in the South Glasgow Hospitals - both to be delivered through traditional capital funding - and Scotland's Schools for the Future building programme.
In addition Ministers propose a new pipeline of revenue-funded NPD investment to be delivered by the Scottish Futures Trust in partnership with the Scottish Government, local government, NHS boards and other public bodies, involving:
Major transport projects with a capital value of £1 billion - the Borders Railway project (£230-£290 million); upgrade of the M8 Baillieston to Newhouse, M74 Raith Junction and M8, M73 and M74 network improvements (approx £320 million); the new Aberdeen Western Peripheral Route and A90 Balmedie upgrade (£350-£450 million).
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Education projects with a capital value up to £750 million - specific projects within Scotland's Schools for the Future programme, subject to the agreement of local authorities (£400-£500 million); improvements to the further education college estate at Kilmarnock and Inverness (around £100 million); modernisation of the Glasgow college estate, subject to the conclusion of a robust and affordable business case (approx £200 million).
* Health projects with a capital value up to 750 million pounds - the Royal Sick Children's Hospital and Department of Clinical Neurosciences in Edinburgh (approx 250 million pounds); revenue support to finance projects through the hub initiative (200 million pounds approx); individual hospital projects, health centres and mental health facilities across Scotland (up to 300 million pounds).
Infrastructure Minister Stewart Stevenson said: "Capital investment is undoubtedly an essential driver of productivity, competitiveness and long-term economic growth. The most recent GDP figures for Scotland indicated strong growth in the construction sector - something put at risk by the 800 million pounds reduction in our capital budget imposed by Westminster, which threatens some 12,000 jobs in Scotland.
"We are determined to mitigate the impact of these severe Westminster cuts by using all available levers to sustain investment in vital infrastructure projects, including transport, education and health projects.
"Since 2007 the Non-Profit Distributing (NPD) model has been the preferred option for revenue financed projects in Scotland and using the NPD model to deliver a pipeline of new projects - including the Borders railway, specific projects within Scotland's School's for the Future Programme and individual hospital projects - is an affordable and effective way of delivering capital expenditure despite sharply falling budgets. We are providing vital support to Scotland's construction industry, jobs and public services. The Scottish Futures Trust, set up to deliver better value for money for infrastructure, will play a central role in this programme."
(GK)
