£3.4bn is to be spent by the Scottish government during 2013-1 on housing, roads, town-centre regeneration and supporting jobs in the construction sector.

Finance Secretary John Swinney has announced a funding package which will seek to stimulate growth and recovery in Scotland’s economy.

Targets for spending will include:

- increased funding for colleges of £61m over the spending review period

- £38m for the housing budget, increasing funding for energy efficiency and more affordable housing.

- total housing supply funding of £859m

- £2m to bring vacant town centre properties into residential use

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- an additional £10m for trunk road maintenance

- £1m to double support for entrepreneurship through the EDGE fund.

Addressing the Parliament Finance Secretary John Swinney said: "Today’s budget is a budget for the Scottish economy.

"This year we will invest £3.4bn in capital projects in the face of drastic budget cuts from the UK government. We are investing in small business through the small business bonus, continuing our support for young people through Opportunities for All and capitalising on new opportunities in the low carbon economy."

Deputy First Minister Nicola Sturgeon said: "Investing in affordable homes supports Scotland’s economy, promotes growth and maintains jobs in our construction industry.

"It is estimated that this £38m package will enhance the energy efficiency of 8000 new and existing homes, fund 2000 adaptations to help older and disabled people live independently, and deliver 350 new affordable homes.

"With the full powers of independence and prudent use of borrowing powers, we could do so much more making a very substantial difference to our economy both now and in the future."

(IT)