The Scottish Government has unveiled plans for the largest investment in Scotland’s road and rail network for a generation.
Over £10 billion of new capital spending, which includes the dualling of the road network between all of Scotland’s cities, was confirmed on Tuesday by Alex Neil.
The cabinet secretary for infrastructure and capital investment made the pledge as he published the Scottish Government’s Infrastructure and Investment Plan, which detailed plans for £60 billion of spending until 2030.
As anticipated, the investment includes a promise to dual the A9 between Perth and Inverness by 2025, with a view to completing dualling of the A96 and the dualled road network between all Scottish cities by 2030.
The upgrading of the A9, which is estimated to cost £1.5bn-£3bn, is scheduled to get under way in 2017, with work starting between Luncarty and Birnam.
Other promises of significant areas of investment include the construction of a replacement bridge crossing over the Firth of Forth by 2016 and major investment in rail improvements, slashing journey times within Scotland and creating high-speed rail links with north-west England.
While many of the plans were already in the public domain, new spending pledges included the high-speed rail link and work on the M8.
Among the commitments is the £45 million for the V&A museum for Dundee’s waterfront, which is due to be completed by 2015.
The plan includes 54 major infrastructure projects and 33 programmes across a range of areas, including schools, hospitals and housing.
Mr Neil heralded the plans as ”crucial” for the future economic well-being of Scotland, and said the investment will provide important support for employment, with every additional £100m of capital invested per year estimated to generate £160m worth of economic activity and support 1,400 jobs in the wider economy for that year.
However, political opponents have said the plans represent little more than a “wish list” and have questioned how they would be funded.
”Investing in our infrastructure is absolutely vital to grow our economy,” said Mr Neil. ”Today’s infrastructure investment plan demonstrates exactly how, when and what we will invest in to deliver that goal, bringing substantial benefits for all of Scotland.
”These are projects that will make a real difference economically driving growth, supporting jobs and delivering a lasting legacy of generations to come. We have been crystal clear that we view capital investment as the vital foundation to lead us out of tough economic times.
”Our clear commitment to dual the routes between all of our major cities by 2030 and complete the dualling of the A9 by 2025 goes further than any previous administration in Scotland. These improved connections will provide a huge boost for Scotland’s economic future and will be particularly welcomed by the construction and civil engineering sectors.
”Similarly, improvements in our rail network will provide both benefits to travellers, and a long-term boost for our economy. Inclusion of high-speed rail highlights our commitment to the Scottish end of the project. We now need Westminster to act and include Scotland in their plans.
”The plan is also clear about our commitment to build new schools, colleges, hospitals and health facilities the length and breadth of Scotland.”’A letter to Santa’Labour claimed the announcement was nothing more than a long-term wish list. Infrastructure and capital investment spokesman Lewis Macdonald said the SNP was writing a ”Santa” letter.
”This is just a wish list of projects that Alex Neil says some future Scottish Government will build. It’s a bit like sending a letter to Santa. The SNP has been in power for five years yet many of the schemes were in previous plans and still the work has not started.
”What Scotland needs right now is action to get things started, not just aspiration. There are a number of questions Mr Neil needs to answer such as how much private capital investment they hope to lever in through their new version of private finance initiatives; which resource budgets they are raiding to transfer money to capital expenditure and whether the SNP are going to invest £50 million in the Caledonian Sleeper?
”Only this morning we read the SNP want the Scottish Government to invest in a high-speed rail link from Scotland to England but in the small print you discover nothing would happen before 2025, and even then will only happen if the Westminster Government build their end first. What kind of ambition is that?
”Scottish Labour supports the need to invest in capital programmes to create jobs to do something to tackle rising unemployment and in particular youth unemployment and we could start by the SNP reversing their 50% cuts to the social housing budget.”’Independence impact a giant omission’Scottish Liberal Democrat leader Willie Rennie echoed many of Mr Macdonald’s comments.
”The Scottish Government has set out a wish list of spending up until 2030. But there is a giant omission,” said Mr Rennie. “There is no discussion of the impact of their plan for independence. Given they expect this to happen in the next five years, it is crazy for the SNP to miss this out.
”People deserve answers from the SNP on how independence will affect the interest rates that the government, business and households will pay. Without this information, nobody has any idea how much of the spending list will be affordable.”
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”The Scottish Government writes at length about how it wants to borrow more, using the record low interest rates of the UK. But it has not a word to say on what interest rate it expects under independence.
”Given that government bonds in Greece and Italy have rocketed in costs, this is the biggest uncertainty hanging over every one of the projects listed.
”The evidence from Europe is that governments who failed to be serious in tackling their deficits have had their government interest rates rise to 5-10% higher than the UK. If that happened to Scotland, with a £60bn programme, it will cost billions in extra interest charges and will cause public projects to be cancelled the length and breadth of Scotland.
”The projects sound good but there’s no evidence the finances are soundly thought through. Given the lack of answers from the SNP on independence, none of the plans can be taken seriously after 2016.”’Scotland needs stability’Norst-East Scotland Tory MSP Alex Johnstone questioned how the Scottish Government is going to fund its spending proposals.
Mr Johnstone, the party’s transport and housing spokesman, said, ”These spending plans set out a hugely ambitious investment in Scotland’s infrastructure and raise obvious questions over how the SNP plans to fund such developments.
”It is not sufficient to simply loan the money that is needed. The SNP, like Labour, seem to think that you should borrow your way out of a debt crisis but this is economic madness.
”With the uncertainty caused by the SNP’s refusal to get on with the referendum, Scotland needs stability if it is to be asked to fund these long-term plans.
”Scotland is better off in Britain because we get the best of both worlds: being part of a larger economy which shares risks and investments, and the ability to tailor local solutions to our specific needs.
”The best way to take Scotland forward is to settle the constitutional question so that Scotland can reaffirm that we are better off in Britain and can plan for the future with confidence.”’Essential response to economic climate’The business sector gave an enthusiastic response to the announcement, with Liz Cameron, chief executive of the Scottish Chambers of Commerce, saying: “This review of the infrastructure investment plan was an essential response to the changing economic climate and we welcome the Scottish Government’s commitment to a long-term plan to improve Scotland’s transportation links and built environment.”
The green lobby’s response was much more lukewarm, with WWF Scotland’s head of policy, Dr Dan Barlow, describing it as “a missed opportunity to support delivery of a low carbon Scotland.”
“On transport the plan supports a 20% increase in road traffic and reads like a plan to tarmac Scotland rather than to help people switch to walking, cycling and public transport,” he said.
“The plan identifies some significant rail investments, but the pace and scale of proposals fall far short of what is required.
“With the SNP Government set to spend more cash on one single bypass than insulating our homes and tackling fuel poverty, it is clear they need to rethink their infrastructure priorities.”
Scottish Building Federation chief executive Michael Levack welcomed the level of ambition.
He added: ”The real acid test will be how many of these projects can be brought forward in the short term so we can begin putting shovels in the ground.
”The industry urgently needs a pipeline of new work to start rebuilding the jobs, skills and capacity we have lost over the past three years.”