Mark has warmly welcomed the Budget just announced by the Chancellor, Alistair Darling.

Mark said:

“It sets out a clear plan to secure economic recovery and create jobs for the future. Alistair Darling didn’t dodge the need to ensure the public finances were on a sound footing but left no doubt that front line services in education and health will be protected.

“I was also really pleased to see the announcement of a £2 billion Green Investment Bank which will give a huge boost to the development of green industries and green jobs in Scotland. They will be the key industries of the future and central to Scotland's economic recovery.”

The Budget for Scotland – new jobs

There were no cheap give away measures but the Scottish Government’s budget will go up by an extra £82 million in 2010-11 so there can be no excuse for cuts because of lack of funding next year.

The new investment in green industry could create up to 150,000 jobs in Scotland. Scotland will also benefit from plans to move civil servants out of London – the Secretary of State, Jim Murphy, is pressing for 1,000 of those jobs to be relocated in Scotland.  

Supporting the most vulnerable

There was new spending as well in other areas such as

• the extension of the Young Person’s Guarantee of a job or training for 18 – 24 year-olds unemployed for six months or more
• an increase in tax credits for families with very young children
• a 2.5% increase in the basic state pension from April
• keeping Winter Fuel Payments at a higher level for next year as well
• no stamp duty to be charged for first-time buyers on property up to £250,000

Small businesses

There is also help targeted at small businesses

• extension of the time to pay scheme which allows businesses more time to pay tax
• making the banks in which the government has a major holding – Royal Bank of Scotland and Lloyds-HBOS – lend much more to small businesses - £94 million next year
• doubling tax allowances for business investment
• setting up a new independent adjudicator where small businesses can take complaints if they feel that they have been unfairly treated when applying for loans

New spending will be paid for through a crack down on tax evaders, the windfall tax on bankers’ bonuses and the new 50% rate of tax on those on highest income. The banks were forced to turn to Government for help when they hit trouble and the least we can expect is that the highest earners should pay their fair share in tax.

The steps taken so far to boost employment like extra funding for Jobcentre Plus offices, the Young Persons Guarantee and the Future Jobs Fund have already had a significant effect. This has meant that unemployment is much lower than in previous recessions such as the 1990s. It is also 2% lower than in the Eurozone or the US.

The present Government took decisive action to support businesses and protect those on modest incomes when the financial crisis struck. Alistair Darling made it clear that Government has a positive role to play in the future as well in creating the basis for a stable and successful economy. It has no intention of standing aside and just leaving recovery to chance as previous governments did during recessions.