Autumn Budget Statement

The Presiding Officer (Tricia Marwick): We move to a statement by John Swinney, the Cabinet Secretary for Finance, Employment and Sustainable Growth, on the autumn budget statement. The cabinet secretary will take questions at the end of his statement, so there should be no interventions or interruptions. Mr Swinney—you have 10 minutes.

14:40
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Stewart Stevenson (Banffshire and Buchan Coast) (SNP):

In the light of the UK Government’s extension of austerity to 2018, what risks for Scottish jobs are created by its continuing failure to fund fully the shovel-ready projects on the Scottish Government’s list or—alternatively—to provide Scotland with the normal powers of an independent country so that we can do it for ourselves?

John Swinney: Stewart Stevenson highlights one of my frustrations in relation to capital expenditure in recent years. The widely accepted view has been that more capital investment by the public sector would have helped to support the process of growth in the economy in a sustained way since 2008.

We warned, when the austerity programme started in 2010, that there would be a consequential impact on economic activity; we take no pleasure in seeing that our view has been vindicated. The fact that the United Kingdom Government has now put in place more capital investment indicates that it got that wrong in 2010, and our persistent pressure has delivered a solution that will assist in the process. It is clear that we could have, if we had had that resource earlier, made more of an impact on the economy. However, we will now deploy that resource effectively to try to support the process.

On Mr Stevenson’s final point, if Parliament had the full range of economic powers that any other independent country takes for granted, we could clearly make more of an impact.