The UK government is backing Scotland with billions in investment to grow the economy and create jobs, the Chancellor has declared, ahead of her visit to country’s north.
Rachel Reeves said Labour was “seizing the huge potential and opportunities that Scotland has to offer” in defence and energy.
She will visit RAF Lossiemouth in Moray and the St Fergus gas plant in Aberdeenshire today, exactly a week after she toured the Rolls-Royce factory near Glasgow Airport.
The Chancellor will meet 200 Boeing staff at the military site where three new E-7 Wedgetail aircraft are being made.
The UK government said its plans to increase defence spending to 2.6 per cent will raise Britain’s GDP by around 0.3 per cent, while adding 26,100 jobs to the Scottish economy.
Ministers have pointed to its £200 million investment for Aberdeenshire’s Acorn carbon capture project, which could create 15,000 new jobs while safeguarding 18,000 more. A final investment decision for the project is yet to be made.
Ms Reeves said: “We’re seizing the huge potential and opportunities that Scotland has on offer.
“Whether it’s in defence to keep the UK safe, or clean energy to power all corners of the country, this Government is backing Scotland with billions of pounds of investment to grow the economy and create jobs.”
But the Aberdeen & Grampian Chamber of Commerce urged the Chancellor to drop the energy profits levy, the so-called “windfall tax” on oil and gas companies, which has a headline rate of 78 per cent.
Chief executive Russell Borthwick said: “If we stick to course on the accelerated decline of the North Sea, then we’ll only have a few short years and not prosperous decades of future oil and gas from our own waters.
Scottish Lib Dems MP Alistair Carmichael urged Ms Reeves to announce new measures to break the link between gas prices and electricity costs to secure cheap, clean power.
“I’m surprised the Chancellor can find a business to host her,” he said. “She won’t be welcome in Aberdeen because of what she has done to oil and gas and she won’t be welcome in most of the shire because of her plans on inheritance tax. All that on top of national insurance increases that are crippling business growth everywhere.”
Scottish Secretary Ian Murray claimed the UK government was investing in defence to “ensure Britain’s security and deter our adversaries and drive economic growth”.
He said: “This investment is a massive jobs opportunity for Scotland – this ‘defence dividend’ is good news for Scotland, where it will help create skilled jobs, drive economic growth, and help tackle the critical skills gaps facing the country in sectors such as nuclear, construction, maritime and project management.”
Michelle Ferguson, director of CBI Scotland, added: “Scotland’s energy and defence sectors are vital to our economy, driving investment and supporting thousands of skilled jobs.
“The Chancellor’s announcement of £200m for the Acorn energy project is very encouraging, but businesses are eager for final approval to unlock its full potential and secure North Sea jobs.”
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