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Hammond unveils £800million boost for Scotland

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The chancellor has unveiled an £800million boost for the Scottish Government after moving to press ahead with infrastructure spending.

Philip Hammond announced plans for a new £23billion productivity investment fund in yesterday’s autumn statement.

It is to be spent on innovation and infrastructure over the next five years.

The additional investment in turn means more money for Scotland through the Barnett Formula.

How this is spent is a decision for the Scottish Government.

Mr Hammond also recommitted to the Tay Cities and Edinburgh city deals and he announced the UK Government is beginning negotiations on a package for Stirling.

“Every city in Scotland will be on course to have a city deal,” he said.

Additionally, there was cash for a range of projects, including Aberdeen Art Gallery, from the Libor fund, raised from fines levied on banks.

The chancellor added: “The investments I have outlined will have benefits right across the union.

“Research and development funding will benefit the UK as a whole and where responsibility for infrastructure investment rests with the devolved administration in Scotland, they will receive the appropriate funding share.

“This Autumn Statement sets out how we will support our economy as we begin writing a new chapter in our country’s history.

“It signals our support for millions of hardworking families who are struggling to make ends meet and our determination to ensure every household has opportunity to share in the nation’s prosperity. This is an Autumn Statement which delivers for Scotland.”

Scottish Secretary David Mundell called on the Scottish Government to “step up”.

He added: “If the £800million of extra capital funding is used properly … this will make a real difference to productivity, jobs and growth in Scotland.

“The UK Government’s decisions today mean a secure economy based on the broad shoulders of the UK, more funding and more powers for Scotland.”

Despite repeated calls, there was no extra support for the oil and gas sector.

But Mr Hammond confirmed the government would deliver the commitments outlined at the Budget in March.