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07/12/2011

Capital Spending Plans Revealed

Capital spending worth up to £60 billion will mean substantial investment in Scotland's rail network and the dualling of road network between all of Scotland's cities, Alex Neil confirmed.

The Cabinet Secretary for Infrastructure and Capital Investment made the pledge as he published the Scottish Government's Infrastructure and Investment Plan, which details plans for up to £60 billion of spending right up until 2030.

The plan includes 54 major infrastructure projects and 33 programmes, across a range of areas, including schools, hospitals and housing.

This investment will provide crucial support for employment, with every additional £100m of capital invested per year estimated to generate £160m worth of economic activity and support 1400 jobs in the wider economy for that year.

Key points include:

* Transport - the Scottish Government will dual the A9 between Perth and Inverness by 2025, with a view to completing dualling of the A96 and the dualled road network between all our cities by 2030; complete construction of replacement crossing over the Firth of Forth by 2016, and invest in substantial rail improvements, reducing journey times between Edinburgh and Glasgow, from Aberdeen to the central belt, Aberdeen to Inverness and on the Highland Main line

* The plan includes high speed rail, and estimates a cost of £15 billion for completion of the route, from North West England to Scotland, with a Scottish contribution of £8 - 9 billion. Minister's will continue to press for this to come to Scotland at the earliest opportunity, although final decisions on timing and route rest with the Westminster Government

* Digital - by 2020 we will deliver next generation broadband to all

* Health - through to 2030 the Scottish Government will continue to invest in property, medical equipment, IT and vehicles to support patient-centred, safe and effective healthcare; including delivering specific projects such as the Southern General Hospital Glasgow and the Sick Kids in Edinburgh

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* Education - by 2018 the vast majority of Scotland's children will benefit from good learning environments, and by 2016 students in Glasgow, Inverness and Kilmarnock will benefit from new colleges

* On housing - through to 2030 the Scottish Government will deliver a step change in the provision of energy efficient homes through new-build programmes and the retrofitting of existing homes, including our commitment to deliver 30,000 homes over the life of this Parliament

Mr Neil said: "Investing in our infrastructure is absolutely vital to grow our economy. Today's Infrastructure Investment Plan demonstrates exactly how, when and what we will invest in to deliver that goal, bringing substantial benefits for all of Scotland.

"It outlines more than 50 key infrastructure projects across a range of sectors. These are projects that will make a real difference economically - driving growth, supporting jobs and delivering a lasting legacy of generations to come.

"We have been crystal clear that we view capital investment as the vital foundation to lead us out of tough economic times. That is why, against the back drop of Westminster cuts in our capital budget, the Scottish Government has switched spending from revenue to capital and put in place a £2.5 billion Non-Profit Distributing pipeline. As a consequence of Scottish Government spending decisions, total capital spending in Scotland will rise by 25 per cent by 2014-15.

"Our clear commitment to dual the routes between all of our major cities by 2030 and complete the dualling of the A9 by 2025 goes further than any previous administration in Scotland. These improved connections will provide a huge boost for Scotland's economic future and will be particularly welcomed by the construction and civil engineering sectors.

"Similarly, improvements in our rail network will provide both benefits to travellers, and a long term boost for our economy. Inclusion of High Speed Rail highlights our commitment to the Scottish end of the project. We now need Westminster to act and include Scotland in their plans.

"The Plan is also clear about our commitment to build new schools, colleges, hospitals and health facilities the length and breadth of Scotland.

"We will do this by using innovative financing methods, driving maximum value for every single pound of taxpayers' money. That is crucial in the face of Westminster cuts.

"And we will utilise whatever borrowing powers we are able to access over coming years. Indeed, if the UK Government listens to our calls for more substantial and immediate powers than contained in the Scotland Bill, we could do even more."

Liz Cameron, Chief Executive of the Scottish Chambers of Commerce, said: "The Scottish Government has set out a clear Central Purpose to increase Scotland's sustainable economic growth rate and this can only be achieved through attaching a high priority to infrastructure investment. This review of the Infrastructure Investment Plan was an essential response to the changing economic climate and we welcome the Scottish Government's commitment to a long term plan to improve Scotland's transportation links and built environment."

The Scottish Government will invest within a sustainable financial framework, and not overly constrain our choices in future years. That is why we are introducing a 5% cap on our future revenue commitments related to capital investment projects as a proportion of our expected future annual total DEL budget. These revenue commitments are a combination of existing PFI commitments, future NPD payments and future debt repayments.

The Scottish Government welcomes views on the investment pipeline in the IIP and will review it in the light of those views, changing circumstances (e.g. borrowing powers) and at each spending review.

(GK)

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