Public sector building 'could account for up to half of economic growth'
New research reveals up to half of Scotland's most recent economic growth could have been accounted for by public sector building.
Up to half of Scotland's most recent economic growth could have been accounted for by public sector building, Holyrood researchers suggest.
Scotland's economy grew by 1.9% in the year to June - driven primarily by public and private construction which accounted for around two-thirds of the overall economic growth.
Public sector housebuilding and infrastructure accounted for two-thirds of this construction growth.
The Scottish Parliament Information Centre (Spice) has therefore estimated that between a third and a half of overall GDP growth can be attributed to public sector building.
The SNP said the new research vindicates the Scottish Government's commitment to investment in contrast to the UK Government's budget cuts. Spice said:Around two thirds of GDP growth between Q2 2014 and Q2 2015 can be attributed to construction growth.
The question is how much of this is identifiable as public construction. We can't say from the actual GDP figures.
There is another source of data, however, which may give an indication of a private/public split in construction output.
The ONS produces construction output data by region. Scottish figures show that between Q2 2014 and Q2 2015 the total value of construction output in Scotland increased by £716 million.
Of this, the value of public housing and infrastructure output accounted for 75% of this increase.
A conservative estimate would therefore be that between a third and a half of overall GDP growth between Q2 2014 and Q2 2015 can be attributed to public housing and infrastructure investment.''
SNP MSP Kenneth Gibson, convener of the Scottish Parliament's Finance Committee, said: That this level of growth has been secured through public investment in the face of a 25% cut to Scotland's capital budget by the Tories is testament to the hard work of Nicola Sturgeon and John Swinney in government - and shows exactly what can be achieved by a government willing to invest, rather than one only willing to cut.
The Scotland Bill as it stands leaves far too many key economic powers in the hands of George Osborne and a Tory government still wedded to their ideological commitment to austerity.
But as these figures show, the SNP have always used every lever at our disposal to grow our economy and create more and better jobs here in Scotland, and we will continue to do so with each and every new power which comes our way.''