How UK Budget will stimulate growth, create jobs and deliver for Scotland – Alister Jack

I’m proud of the transformational impact this levelling-up cash is having across our country as we strive to create opportunities for all, regardless of background. I’m also delighted yesterday’s Budget puts more cash in the pockets of Scottish workers through a 2p cut in National Insurance. Combined with the NI cut last autumn that means 2.4 million Scots are benefiting to the tune of £680 a year.

I argued hard in Cabinet for this UK-wide tax-cut, because I was determined that Scottish families should benefit from it. We’re also giving an average £1,260 boost to working families by raising the high-income child benefit charge threshold. I would urge Scottish Government ministers to use their income tax powers to follow our example.

Real devolution in action

Their insistence on making Scotland the highest taxed part of the UK discourages business, hampers growth and piles pressure on hard-pressed families. Yesterday’s budget is giving tax breaks to families, driving down inflation and boosting communities.

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On the latter, the Budget builds on our city & growth deals, freeports, investment zones, as well as the plethora of levelling-up funding streams, with yesterday’s announcements taking our direct investment past £3bn. Kirkwall, Peterhead, and Arbroath are getting £20 million each through the ‘long-term plan for towns’ programme, which already supports seven other Scottish towns.

Dundee’s magnificent V&A museum will get £2.6m, with the cities of Perth and Dunfermline sharing £10m to support cultural projects of their choice, ensuring that all Scotland’s cities have benefitted under the levelling-up agenda. These are yet more examples of what I call real devolution, whereby the UK Government empowers communities, knowing locals are best placed to devise the projects that will benefit their areas.

Scotland’s whisky industry makes a crucial contribution to the UK economy. Therefore, it’s great news that the spirits duty freeze is to be maintained until February next year, a measure warmly welcomed by distillers. The space industry is one of our fastest growing and most exciting sectors. And the UK Government is one of its strongest supporters. I’m delighted that a cash boost of up to £10m has been made available to support the SaxaVord spaceport on Shetland. Subject to a successful business case, the cash will enable SaxaVord to achieve its ambition of becoming the first site in Europe to launch a small satellite into orbit later this year.

It’s fantastic that one of Scotland’s most remote communities is at the vanguard of space technology. It’s not just Shetland that will benefit. Saxavord’s plans to become Europe’s leading small satellite destination by 2030 will support hundreds of jobs and ensure Scotland is leading the UK in the space race.

With the Scottish Government already benefiting from a £41bn settlement from the Treasury, the largest in devolution’s history, the Budget also delivers a further £295m in Barnett consequentials. With inflation halving and forecast to fall further, the economy is turning a corner. This Budget stimulates growth, creates jobs and, crucially, delivers for Scotland.

Alister Jack is Secretary of State for Scotland