Continuing tough economic conditions demand the Scottish Government be allowed to bring forward further vital infrastructure investment, John Swinney has said.
The Finance Secretary was speaking on Friday as the Scottish Government published its latest assessment of Scotland's economy.
With evidence to suggest that Treasury predictions of UK growth in 2010 are overly optimistic, Mr Swinney said that ongoing accelerated capital spending is vital.
He said: "This latest assessment of the economy underlines that conditions are still extremely tough.
"Businesses and households continue to face real challenges. This just underlines the importance of our swift response, putting in place a comprehensive economic recovery plan, which is supporting some 15,000 jobs across Scotland."
A key element of the plan is accelerated infrastructure spending this year, delivering vital investment and sustaining construction jobs across the country.
"But unless we are given the chance to go on investing this kind of positive action will be jeopardised. That is underlined by evidence which suggests the Treasury's growth forecasts for next year are optimistic at best," he continued.
"Given the uncertain outlook for the UK economy, the Chancellor should use his Pre Budget Report this autumn to allow the Scottish Government to further accelerate the capital budget into 2010/11 from the following year. This will ensure that none of the positive impact we are making in turning round the recession through enhanced capital investment is undone, but is maintained and indeed intensified."
The publication shows that the UK Government's growth forecast for 2010 remains optimistic compared to the latest forecasts from the IMF and the OECD for the UK economy.
UK Government forecast growth of +1.25% in 2010. In contrast, the IMF and OECD forecast growth in 2010 of just +0.2% and 0.0% respectively.
(GK/BMcC)
Time and date
CONSTRUCTION DIRECTORY
Latest Construction News
15/11/2024
A major milestone has been reached in the UK's transition to a greener energy future. Ofgem has approved the Eastern Green Link 1 project, a £2.5 billion investment that will see the installation of a 196km subsea electricity cable between Scotland and England. The project, a joint venture between ...
15/11/2024
Falkirk Council has secured a £100 million Growth Deal that is expected to create 1,660 jobs and generate £628 million in economic benefits for the area. The Deal, signed by the UK and Scottish Governments, will fund 11 projects, including: • A Carbon Dioxide Utilisation Centre • A Bioeconomy ...
15/11/2024
The Scottish Plant Owners Association (SPOA) has raised concerns that the measures announced in the Autumn Budget could lead to the demise of the plant hire industry in Scotland. The association argues that the increased tax burden and other economic pressures will have a significant negative ...
15/11/2024
Maxi Construction has been awarded a £1.6 million contract by The City of Edinburgh Council to replace the Reinforced Autoclaved Aerated Concrete (RAAC) roof at Pentland Primary School. The phased project will involve the removal of existing roof coverings and ceilings, the replacement of RAAC ...
15/11/2024
Clark Contracts has been awarded a contract to retrofit Scotland's National Retrofit Centre at BE-ST's Innovation Campus. The project aims to transform the building into a living laboratory, showcasing best practices in non-domestic retrofit. The ambitious project will involve a range of ...
15/11/2024
The Scottish Government has announced plans to bypass the villages of Springholm and Crocketford on the A75, a key route linking Scotland to Ireland. Jacobs UK Ltd has been awarded a contract to undertake initial design and assessment work for the bypass. The project is funded by the UK ...
15/11/2024
Dundee City Council has secured a £693,383 grant from the Scottish Government's Recycling Improvement Fund to upgrade its recycling facilities at Baldovie and Riverside. The funding will be used to purchase new waste management equipment, such as roll packers and compactors, to improve efficiency ...
15/11/2024
Homes for Good and Glasgow Credit Union have formed a partnership to address housing inequality in Glasgow and neighbouring areas. Glasgow Credit Union has provided a £2.4 million loan to Homes for Good, which will be used to purchase up to 35 homes for low-income individuals and families. The ...
15/11/2024
The historic Troon station has reopened following a £5m restoration project. The station was extensively damaged by a fire in 2021. Network Rail, in partnership with AmcoGiffen and CPMS, undertook the rebuild, which included the restoration of the station's iconic façade while incorporating modern ...
15/11/2024
BEAR Scotland, on behalf of Transport Scotland, is undertaking emergency works on the A828 between Ledaig and Benderloch to address a safety concern related to a deteriorating rock face. Recent monitoring has identified a fractured rock mass 60 metres above the road, requiring urgent attention. To ...