The UK Government is backing Scotland with billions in investment to grow the economy and create jobs, the chancellor has said ahead of her visit to the country.
Rachel Reeves said Labour is “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 on Friday, 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% will raise Britain’s GDP by around 0.3% – equivalent to around £11bn of GDP in today’s money, according to estimates – while adding 26,100 jobs to the Scottish economy.
It also pointed to its £200m 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.
Chancellor Rachel 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.”
Scottish secretary Ian Murray said: “The UK Government is investing in defence to ensure Britain’s security and deter our adversaries and drive economic growth.
“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.”
Great British Energy will be headquartered in Aberdeen to drive clean power generation across the UK.
The Spending Review also committed £250m to secure the future of HMNB Clyde – the first stage of a multi-decade, multi-billion renewal project and all three Clyde shipyards are currently fulfilling contracts for the Royal Navy.
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