Spring Statement heralds further boost to growth in Scotland
Scottish Secretary welcomes Chancellor's 拢2.2billion defence budget boost to create more jobs and opportunities in the sector as part of Plan for Change
Growth is central to the Spring Statement announcements and Plan for Change, as Sec of State Ian Murray championed at the signing of the Argyll & Bute Growth Deal recently
Chancellor Rachel Reeves this week pledged a new era of security and national renewal as she delivered a Spring Statement to kickstart economic growth, protect working people and keep Britain safe.聽
Scottish Secretary Ian Murray has welcomed her measures, including a 拢2.2 billion increase in the UK-wide defence budget for 2025-26, on top of 拢2.9 billion announced at Autumn Budget.
Mr Murray said:
We are living in an increasingly insecure world, and the extra 拢2.2 billion for defence 鈥� on top of the 拢2.9 billion announced at Autumn Budget 鈥� will make Britain stronger and safer. This is a huge boost for Scotland鈥檚 world-leading defence sector, which delivers Scottish economic growth and more highly-skilled jobs. The increase will also mean better homes for our military personnel and families, including the thousands based in Scotland.聽
Today鈥檚 announcements underpin the great strides being made by the UK Government in achieving stability in our public finances. There have been three interest rate cuts since the general election. Next week the increase in the minimum wage will mean a pay rise for hundreds of thousands of workers in Scotland and our employment rights legislation will deliver the biggest upgrade in workers鈥� rights in a generation.聽
The Spring Statement also delivered an extra 拢28 million for the Scottish Government. That is on top of their 拢4.9 billion extra from the budget, creating a record 拢47.7 billion settlement for 25/26, announced at the Autumn Budget. This is the biggest budget settlement in the history of devolution and an end to austerity. The Scottish Government must now use that wisely - to improve Scotland鈥檚 failing public services.鈥澛�
This latest defence boost builds on the Chancellor鈥檚 recent visit to Babcock in Rosyth where she also announced that UK defence exporters would benefit from a 拢2 billion increase to UK Export Finance lending capacity.聽
Her Spring Statement underlines that growth is at the heart of the UK Government鈥檚 Plan for Change with 拢13 billion of additional capital spend allocated alongside the defence funding boost.
It follows the Budget in the autumn where it was announced that the Scottish Government will be provided with a 拢47.7 billion settlement in 2025/26 鈥� the largest in real terms in the history of devolution. This includes an additional 拢3.4 billion through the Barnett formula, with 拢2.8 billion for day-to-day spending and 拢610 million for capital investment.聽聽
The measures announced this week top up these Barnett consequentials by a further 拢28 million in 2025/26.
The Scottish Government continues to receive over 20% more per person than equivalent UK Government spending in the rest of the UK, translating into over 拢8.5 billion more in 2025-26.聽Block Grant funding from 2026-27 onwards will be confirmed at Phase 2 of the Spending Review, which concludes on 11 June 2025. The Chief Secretary to the Treasury will meet with his counterparts from the devolved governments to discuss their priorities ahead of its conclusion.