The Chancellor is to announce an Investment package of £57 million for Scotland as part of his Budget on Wednesday this week.
- North East Scotland to receive £27 million funding to support development of green energy
- Further £5 million funding expected for Global Underwater Hub in Aberdeen
- £25.8 million in funding will be brought forward over the next five years for faster investment in three Growth Deals in Scotland to support local industries
Scottish businesses are set to receive a boost to their green energy transition and further investment to create local jobs in key sectors with a more than £57 million investment in tomorrow’s Budget (Wednesday 3 March).
Chancellor Rishi Sunak is expected to commit £27 million for the Aberdeen Energy Transition Zone, a first step in delivering on the Government’s promise for a sector deal for the oil and gas industry.
This is set to transform North East Scotland into a globally competitive hub for cleaner energies such as offshore wind and hydrogen as the industry decarbonises and diversifies, supporting green jobs and helping the industry transition on our path to net zero. Recent industry reports suggest that the Aberdeen region supports over 20,000 direct jobs in the oil and gas sector.
Rishi Sunak is expected to announce up to £2 million to support the continued development of industry proposals for the North Sea Transition Deal and a further £5 million for the Global Underwater Hub in Aberdeen, building on last year’s £1.3 million commitment. These proposals will leverage existing skills and expertise in the area and drive forwards a low carbon future for the area and secure the long-term viability of the energy sector.
The North Sea Transition Deal will support jobs and net zero as the oil and gas industry decarbonises and diversifies to cleaner energies.
The Chancellor of the Exchequer, Rishi Sunak, said:
“It’s vital that as we deliver our Plan for Jobs and level-up across the whole UK we build back better in a sustainable way.
“The measures set out in tomorrow’s Budget will boost Scotland’s transformation into a green energy hub, deliver on our commitment to Net Zero, and deliver a boost that cities and industry need.”
Scotland is expected to receive an investment boost that reenergises sectors such as infrastructure, aerospace, digital and tourism through the acceleration of £25.8 million in funding over the next five years for the Ayrshire, Argyll and Bute, and Falkirk Growth Deals. Reprofiling these deals so they are delivered over ten rather than 15 years will mean:
- The Ayrshire Growth Deal will receive an extra £3.4 million per year from 2021/22 for the remaining 10 years of the Deal. The Deal has a focus on regeneration, infrastructure and aerospace technology and is expected to leverage private sector investment of more than £300 million, with the potential of creating up to 7,000 new jobs.
- The Argyll & Bute Growth Deal will receive an extra £800,000 per year from 2022/23 for the remaining 10 years of the Deal. This will lead to faster investment in priority areas such as tourism, housing and digital connectivity.
- The Falkirk Growth Deal will receive an extra £1.3 million per year from 2022/23 for the remaining 10 years of the Deal. This will lead to faster investment in key areas such as infrastructure improvements to support sustainable travel, tourism and energy.
Designed to deliver on the Government’s Plan for Jobs and leverage industry strengths in local areas, these Deals continue to be delivered collaboratively with the Scottish Government through regional partnerships led by local authorities.
Treasury support to Scotland throughout the pandemic has included:
- Providing an additional £9.7 billion of funding for the Scottish Government to support people, jobs and public services
- Protecting 779,500 jobs through the furlough scheme
- Supporting the incomes of 161,000 people
- Providing more than 90,000 business loans worth nearly £3.4 billion for Scottish businesses
Press release issued by the Treasury 1/3/21