Finance Secretary John Swinney has pledged to spend £180m on skills, construction and the green economy in Scotland over the next two years, in what he called a "budget for jobs and growth".

His optimism was echoed across the construction sector, as investment measures included £40m of additional spending on affordable housing and £80m on new schools to support the construction sector.

£1m will also be invested in historic buildings, and the much-anticipated Energy Skills Academy will be set up.

Mr Swinney said: "In difficult economic times this government is doing everything within its limited power to stimulate Scotland's economy, to invest in our young people, protect households and support front line services.

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"To support the construction industry and inject growth into the economy we will provide an immediate stimulus to the construction industry of £40m through investment in affordable housing.

"I am also determined to ensure our young people get the best education in the best possible schools. So to further assist the construction sector we will increase the number of schools being built from 55 to 67 bringing forward £80m investment through NPD.

"A Green Investment Package of £30m over the next three years will help home owners improve energy efficiency, cutting bills and tackling fuel poverty while supporting our growth industries and helping to meet our climate change targets. We will also establish the Renewable Energy Investment Fund continuing our support for Scotland’s growing energy sector."

A freeze on public sector pay will be eased slightly and tuition fees and prescriptions will remain free.

(NE)