Additional £800M Allocated To Scotland In Autumn Statement
23 November 2016, 17:15 | Updated: 23 November 2016, 17:17
Scotland will receive a ''very significant'' £800 million boost to its budget, Chancellor Philip Hammond has said.
The money will be allocated to the Scottish Government over the five years through to 2020-21, as a result of increased infrastructure spending announced in the Autumn Statement.
But the money comes after reductions to the amount the Holyrood administration has to spend, which SNP ministers have branded ''unacceptable''.
Prior to the Chancellor's statement, Scottish Finance Secretary Derek Mackay said: ''Our discretionary budget will have been cut by £3.3 billion in real terms, or 10.6%, since 2010-11 and within this, our capital budget will have fallen by £600 million, or 15.7%.''
Mr Hammond insisted, however, that measures in his statement ''will have benefits right across the Union''.
He announced the Conservative Government at Westminster will work with the Scottish administration and others ''towards a City Deal for Stirling'', saying this will mean UK ministers have agreed or are discussing such a deal for each of Scotland's cities.
With the Chancellor announcing various infrastructure investments including £2.3 billion for housing south of the border, he stressed the Scottish Government will ''receive the appropriate funding share''.
He said: ''The decisions I have announced today mean that Scotland will receive very significant additions of £800 million to its capital budget.
''It is also great news that I can also confirm wider investments for Scotland including the opening of City Deal negotiations with Stirling, and announcing that we are open to doing so with the Tay cities.''
The Chancellor added: ''This Autumn Statement sets out how we will support our economy as we begin writing a new chapter in our country's history.
''It signals our support for millions of hardworking families who are struggling to make ends meet and our determination to ensure every household has opportunity to share in the nation's prosperity.
''This is an Autumn Statement which delivers for Scotland.''
To help provide a ''stable tax regime'', he said the Government ''recommits'' to its long-term plan for the oil and gas sector.
But he said steps will be taken to ''simplify the reporting process and reduce the administrative costs of petroleum revenue tax for oil and gas companies''.
While UK oil and gas revenues have fallen in recent years, the Treasury forecasts these will rise to #1.8 billion a year in 2019-20, before then dropping back in the two years after that.