How a Labour government could mean an extra £70 billion for Scotland
In his speech to Scottish Labour Conference today, Shadow Chancellor John McDonnell outlined how Labour’s plans mean an extra £70 billion for Scotland.
First off - the Barnett consequentials. McDonnell said:
“Our UK policy commitments to additional spending on public services in areas such as education, social care, and childcare, meant an additional three billion pounds of Barnett consequentials in 2022 for the Scottish Government.”
Over 10 years, that’s an extra £30 billion in total.
Then there’s Labour’s plans for a National Transformation Fund, this would be used to rebuild the country’s decaying infrastructure, which would include an extra £20 billion in capital investment in Scotland. That means bringing our poorly maintained transport networks up to scratch, as well as investing in renewable energy on a huge scale.
In addition to that - Labour has also pledged to properly fund a Scottish Investment Bank. McDonnell set out what this bank would do:
“Investing in small and medium sized business, environmentally transformative projects, supporting industrial strategy and rebalancing Britain’s economy away from London and the South East. “
Over 10 years, that would add up to another £20 billion for the Scottish economy. Not only that, it would also begin to solve the severe productivity crisis - the symptom of a lack of investment in the economy.