Finance Secretary John Swinney has said the UK government needs to reverse cuts to capital in order to facilitate £800m worth of infrastructure projects in Scotland.

Mr Swinney has published a list of 'shovel-ready' projects that he believes could be delivered before the end of 2013-14, provided the UK government invests in growth.

The Scottish Executive has said the UK government has imposed a 33% cut to Scotland’s capital budget.

Mr Swinney has written to the Chancellor ahead of the autumn statement, calling for a boost to capital investment to protect short-term recovery and provide infrastructure to drive long-term economic growth.

Some of the projects named by the Executive include the Clyde Gateway, the upgrading of the A68 Pathhead to Tynehead Junction and the NHS Grampian Inverurie Health Centre and Community Maternity Unit.


It is claimed by the Scottish government that projects like these could support thousands of jobs. Many have already received planning consent. But it said cuts to Scotland’s capital budget have left a gap in available funds.

John Swinney said: "Scotland’s budget for construction and maintenance projects is being cut by 33% by the UK Coalition Government in a failed attempt to reduce public sector borrowing and while we are investing what we can in economic recovery in Scotland there is much more to do.

"If these projects could get under way now, rather than being delayed, they would play a major part in helping to tackle unemployment. Capital investment is central to the Scottish Government’s economic strategy, with every additional £100m of capital spending estimated to support around 1,400 jobs in the Scottish economy.

"We have set out further investment in construction, skills and the green economy in our draft budget. Only last month we announced details of an additional £40m of investment for affordable housing.

"With the full fiscal and economic powers of independence Scotland could create the best possible environment for economic success."

(IT)