First Minister Alex Salmond has written again to Prime Minister David Cameron calling for increased capital spending to support Scotland’s economic recovery.

On April 30 2012, Mr Cameron replied to Mr Salmond's letters refusing to release infrastructure investment for more than 30 “shovel-ready” projects in Scotland that could begin immediately.

With the UK now in a "double-dip" recession, the First Minister has said that he will seek to build a "progressive partnership" with new council administrations when they come into place, with a view to making a collective case to the UK administration across local and national government in Scotland on the need for increased capital spending to keep recovery on track.

Mr Salmond said: "Scotland's economy has been showing positive signs of recovery, with unemployment down and employment rising.

-- Advertisement --

"But with the UK now in a 'double-dip' recession, Scotland's recovery needs the stimulus of increased capital spending. At the Prime Minister's request, the Scottish Government submitted a list of 36 ‘shovel-ready’ projects all across Scotland that are ready to get started straight away if Westminster releases capital funding.

"The Prime Minister has now refused that proposal, but we must use every opportunity to press the case for a capital spending boost in the interests of jobs and recovery in Scotland.

"I believe that Scotland can make this case most effectively if we make it collectively – which is why I want to build a progressive partnership with the new council administrations when they come into place to demand that Westminster supports the 'shovel-ready' projects that can boost jobs and local economies in every part of Scotland and the nation as a whole."

Michael Levack, Chief Executive of the Scottish Building Federation, said: "The outlook for Scotland's construction sector continues to be fragile. The Scottish Government clearly understand the importance of infrastructure investment and the need to ensure a steady pipeline of work for Scottish construction businesses.

"We fully support the First Minister's latest request to the UK Government to facilitate expenditure for shovel ready projects.

"The support of the Scottish Government in pursuing a reduction in VAT on repair, maintenance and improvement is also welcome and stands in stark contrast to the UK Government's lack of action to stimulate much needed activity to protect jobs, businesses and boost training opportunities."

(CD)