The Autumn Budget 2021 will deliver the largest annual funding settlement to Scotland since devolution, helping level up across the whole of the UK.
The Chancellor yesterday announced Barnett-based funding for the Scottish Government of £41 billion per year – delivering the largest annual funding settlement, in real terms, since devolution over 20 years ago. This includes a £4.6 billion per year spending boost – as part of a Budget and Spending Review that delivers a stronger economy for the whole of the UK.
Rishi Sunak set out a plan to deliver the priorities of the British people by investing in stronger public services, levelling up opportunity, driving business growth and helping working families with the cost of living.
As part of the significant spending plans, Scotland will receive an average of £41 billion per year in Barnett-based funding representing a 2.4% rise in the Scottish Government’s budget each year. The Scottish Government will now receive around £126 per person for every £100 per person of equivalent UK Government spending in England.
Chancellor of the Exchequer, Rishi Sunak said:
Scottish Secretary, Alister Jack said:
Targeted funding in Scotland
On top of the record funding for the Scottish Government, Scotland will benefit from the UK Government’s commitment to invest in people, jobs, communities and businesses.
Targeted projects in Scotland include:
- Over £200 million to be invested in Scotland to boost the post-pandemic recovery and enhance the Scottish economy. This will include £172 million of the Levelling Up Fund for 8 important projects including the redevelopment of Inverness Castle, the much-needed renovation of the Westfield Roundabout in Falkirk, and a new marketplace in Aberdeen City Centre, as well as over £1.07 million of the Community Ownership Fund for five projects in Whithorn, Inverie, New Galloway, Kinloch Rannoch and Callander that are protecting valued community assets.
- Providing £1.9 billion for farmers and land managers and £42.2 million to support fisheries. Up to £1 million, to support the delivery of a ‘green’ formula E race showcasing Hebridean Green Hydrogen to a global audience.
- Expanding the existing trade and investment hub in Edinburgh to grow trade for Scotland.
- Up to £3 million to bring world-class art exhibitions to the Burrell Collection in the heart of Glasgow.
As a result of our strong United Kingdom, Scotland will benefit from:
- A 50% cut in domestic Air Passenger Duty for flights between England, Scotland, Wales and Northern Ireland and an additional £22.5 million of new funding in anticipation of the Union Connectivity Review recommendations where we will work with the devolved administrations on improving UK-wide connectivity.
- New funding for the British Business Bank to establish a £150 million fund in Scotland, helping Scottish businesses to get the financing they need.
- The new £1.4 billion Global Britain Investment Fund which will support investment directly into Scotland.
- A record £20 billion by 2024-25 in Research and Development supporting innovation in Scotland.
- Confirmation that total funding will at a minimum match the size of EU Funds in Scotland, each year through the over £2.6bn UK Shared Prosperity Fund, which will invest in skills, people, businesses, and communities, including through ‘Multiply’, a new adult numeracy programme that will provide people across Scotland with essential numeracy skills.
- An increase to the National Minimum Wage of £9.50 an hour, with young people and apprentices also seeing increases.
- Freezes to fuel duty for the twelfth consecutive year and a freeze on Vehicle Excise Duty for heavy goods vehicles.
- A freeze on alcohol duty, which will mean that whisky benefits from the lowest real terms tax rate since 1918.