Devolved administrations demand ‘real investment’

THE UK Government must provide “real investment” to support the economy in these “turbulent times”, Scotland’s Finance Secretary has said.

Derek Mackay spoke out after the Scottish, Welsh and Northern Ireland finance ministers had a meeting on Monday with the UK chief secretary to the treasury, David Gauke.

The Scottish Government said the ministers of the devolved administrations have called on the UK Government to end austerity, to set out “a positive fiscal stimulus” in the autumn statement and address the economic uncertainty following the EU referendum.

The devolved administrations also warned the UK Government that there should be no further reduction in their budgets, Scottish ministers said.

Following the meeting, Mr Mackay said: “People across the UK have already paid the price of austerity, the UK Government must now ensure they do not pay the price for the economic uncertainty caused by the Brexit vote.

“It is time for the UK Government to set out a clear plan, to protect budgets and services and to commit not to introduce any further cuts to the budget settlements devolved administrations were given last year.

“What is most important is that we see a positive fiscal stimulus to support our economy in these challenging and turbulent times.”

The Scottish administration also said the UK Government has confirmed its support for the £500 million Scottish Growth Fund. The three-year scheme aims to see the government work to unlock investment for the private sector following the Brexit vote.

Mr Mackay added: “We were able to make progress on this and the Scottish Government has ensured this support will be available to Scottish businesses, with approval from the Treasury.”