Chancellor, Philip Hammond, is expected to extol the benefits of the “union in action” when he sets out his financial plan for the whole country today.
A senior Treasury source confirmed last night the Scottish Government would receive an “important uplift” in the Budget – the consequence of UK Government investment in devolved areas such as education and skills.
The Tory frontbencher is also due to outline plans to consider how reforms to the tax system could assist the sale of oil and gas fields with the aim of maximising production in the North Sea.
The move is likely to be viewed as an overture to Scotland with the prospect of another independence referendum back on the table.
Theresa May has repeatedly insisted there shouldn’t be another vote, but the signs suggest the UK Government is preparing to fight a second campaign.
Just last month, senior UK Government ministers were reminded at a Cabinet meeting dedicated almost entirely to the topic that they must continue to engage with the devolved administrations to nurture the union.
It was also a key theme of Mrs May’s speech to the Scottish Conservatives conference in Glasgow last week.
The Treasury source added that the Scottish Government would benefit from “significant investments” through the application of the Barnett formula.
They said: “Through UK Government investment in areas such as education and skills, the Scottish Government will see an important uplift in its budgets.
“The chancellor believes that these are benefits of the union in action with the Scottish Government having the flexibility to make its own decisions – but ultimately, it is the UK’s stability and ongoing resilience that allows this investment to happen.”
Mr Hammond is also expected to give an “upbeat” assessment of the future of the UK economy and commit to keep reducing the deficit.
In the final run-up to his speech, Scottish Labour urged him to reverse planned welfare cuts, provide greater support for the oil and gas industry and apply VAT exemptions to Scotland’s police and fire services.
Economy spokeswoman, Jackie Baillie, said he must “call a halt to austerity and start seriously investing in our public services”.
SNP economy spokesman, Stewart Hosie, responded that everything in the Budget had to be seen in the context of the “Tory hard Brexit bombshell”.
He added: “The Tory government – with just one solitary MP from Scotland – is putting the entire UK and Scottish economy at risk.”
Scottish Liberal Democrat Leader Willie Rennie agreed the Budget would be dominated by measures to “battle the economic consequences of Brexit”.
