01 October 2004
Capital spending in Scotland is to rise by 40% over the next three years, providing more than £3bn for infrastructure, Finance and Public Services Minister Andy Kerr announced this week.
Giving details of the Scottish budget on September 29, Kerr made it clear that transport, health and education will be among the Executive's main priorities. He said that in the three years 2005-2008, more than £85bn would be invested in Scotland.
Scotland's universities, which warned they could become the poor relations of their counterparts south of the border because of top-up fees in England, are to receive an extra £100m in each of the next three years.
Spending on further and higher education will rise by 30% by 2007/08. There will be an annual increase of 14% in the transport budget, allowing a start to be made on major public transport projects, including rail links to Edinburgh and Glasgow airports.
Health spending will rise by 8.5% a year to reduce waiting times and to continue investment in health promotion.
Spending on affordable housing will increase by £100m by 2007/08. However, the Chartered Institute of Housing in Scotland immediately voiced disappointment at the figure, saying it would provide only 800 new affordable homes.
Local authorities are also disappointed. Although Kerr said there would be a 9.7% rise in revenue support by 2008, spending provision for councils is the lowest of all the major cash programmes.
Pat Watters, president of the Convention of Scottish Local Authorities, said the 'settlement leaves Scottish local government well short of where it should be'.
The budget follows a 19% increase in the Scottish Executive's devolved grant to more than £30bn — double its initial 1999 allocation.
PFoct2004
