£350m funding boost for Scotland announced in Budget

Scotland will receive a £350 million funding boost as a result of Budget announcements, the Chancellor has said.

The money comes through the Barnett formula due to increased UK Government spending in social care, health and education.

Philip Hammond said the funding package was ''demonstrating once again that we are stronger together in this great United Kingdom''.

He also announced measures to support the oil and gas industry, including an expert panel to look at how taxation can be used to help the sector.

Under the Barnett formula - used to calculate public expenditure allocated to the devolved nations - the Scottish Government's resource budget will be boosted by £260 million in the period to 2020 while the capital budget will increase by £90 million to 2021.

Mr Hammond said: "Today's Budget equips our economy and our people for the future - while dealing with the challenges we face as one nation.

"Benefiting from £350 million of extra investment, the Scottish Government can take further steps to strengthen Scotland's economy and make sure that Scottish people, of all background and no matter where they live, feel the benefits of economic growth."

The Treasury also confirmed "good progress" is being made towards a City Deal with Edinburgh, which would provide a package of decision-making and funding powers, while negotiations on a City Deal for Stirling have been opened.

It said the UK Government also looks forward to considering proposals for a Tay Cities Deal in "the near future".

Scottish Secretary David Mundell said: "The Autumn Statement announced an additional £800 million for Holyrood and this Budget allocates a further £350 million.

"That means, in the past year, the UK Government has set out an extra £1 billion investment in Scotland.

"It is now up to Holyrood to use this money, along with their raft of newly-devolved powers, to make the right decisions to grow Scotland's economy."

The Scottish Government has said that any additional funding for Scotland should be viewed in the context of the "huge cuts" it is already facing.

Scotland's Finance Secretary Derek Mackay said that despite the increase in Barnett consequentials, the "Chancellor's spring budget plans confirm £2.9 billion of cuts to the Scottish budget over 10 years".

He said: "The Chancellor has today confirmed a real-terms cut to the Scottish budget of 9.2% between 2010/11 and 2019/20.

"While I welcome the additional Barnett consequentials that were announced today, no-one should think that this budget provides an end to austerity from the UK Government - in fact there is still a further £3.5 billion of cuts to come.

"On top of that the Chancellor continued with the UK Government's damaging welfare cuts that will make many vulnerable and low income households worse off.

"The real elephant in the room in this budget was Brexit. There was no mention of the UK Government's plans to protect and grow the UK economy as the Prime Minister gets ready to trigger Article 50.

"This is simply not acceptable. Brexit is a real threat to people across Scotland in so many ways. The Chancellor must tell us his plans."

He added: "We have repeatedly called on the UK Government to take action to support the oil and gas sector.

"While welcome, today's announcement on a 'discussion paper' is long overdue and is not the urgent action that the industry needs.

"The Scottish Government will continue to do everything it can to boost the economy, tackle inequality and provide high-quality public services, but today's UK budget does little to support those aims."

Scottish Labour leader Kezia Dugdale said: "This was billed as a Budget that would be upbeat but what we got instead was an insight into the devastating impact a chaotic Tory Brexit will have on families across the UK.

"Under the Tories, living standards are being squeezed, debt is on the rise and public services are being cut.

"The Chancellor could have brought an end to seven years of damaging Tory austerity but instead he doubled down by imposing cuts to public services and welfare.

"Despite the £350 million extra for the Scottish Government announced today, the reality is that by the end of this decade up to £1 billion will have been cut from Holyrood's budget - cuts the SNP chooses to meekly pass on to families here in Scotland.

"The fact that the Chancellor barely mentioned Brexit at all is a sign of the Tories' complacency.

"Brexit will not only damage our economy but it has also provided the Nationalists with the excuse they have been looking for to impose another destabilising independence referendum on the people of Scotland. The Tories cannot be trusted on the Union."