Schools and health boost as major investment green lighted

Deputy First Minister, John Swinney, has announced an investment of some £330M with health and education facilities to be built.

Following an ONS review of proposals developed by the Scottish Futures Trust (SFT), the Deputy First Minister has instructed ten new schools and two new health projects to proceed to financial close as soon as possible – an estimated capital investment value of around £330M.

Investment in the projects was put on hold earlier this year while advice was sought from the ONS about the impact of revisions to European accounting guidance on the classification and budgeting for public infrastructure projects.

Mr Swinney told Parliament today: “The Scottish Government has always prioritised public infrastructure projects as a critical tool for growing our economic recovery.

“In light of the continuing constraint being applied to public finances – including capital budgets – we will continue to take forward programmes supporting additional investment in our economy and our asset base, creating jobs and enhancing services.

“As I have advised Parliament on a number of occasions over the last year, in response to updated EU accounting guidelines the Scottish Futures Trust submitted proposals to the ONS aimed at ensuring that the balance of public and private sector control and risk and reward in Scotland’s hub funding model reflects the updated guidance.

“While that process has been underway, twelve projects in the pipeline have been unable to progress as planned. I have today advised Parliament that these projects can now proceed to financial close as soon as possible.

“From Elgin to Kelso, these twelve projects – worth around £330M– will make an enormous difference in their communities, not just in the jobs that their construction will bring but in the health and education benefits they will provide to local people.”

 

The twelve projects affected were:

Lothian Health Centre bundle (NHS Lothian) – £25M
Inverclyde Care Home (NHS Greater Glasgow and Clyde) – £8M
Kelso High School (Borders Council) – £20M
Newbattle High School (Midlothian Council) – £35M
Baldragon Academy (Dundee City Council) – £25M
Elgin High School (Moray Council) – £25M
Dalbeattie Learning Campus (Dumfries and Galloway Council) – £25M
Barrhead High School (East Renfrewshire Council) – £25M
Our Lady & St Patrick’s High School (West Dunbartonshire Council) – £25M
Ayr Academy (South Ayrshire Council) – £25M
Campbeltown Grammar and Oban High School (Argyll and Bute Council) – £55M
East Ayrshire Learning Campus (Kilmarnock Academy) (East Ayrshire Council) – £40M

 

Parliament was also updated on the Scottish Government’s position on the Not for Profit Distribution element of its revenue-financed infrastructure programme – including a repeated reassurance that there will be no impact on the delivery of the Aberdeen Western Peripheral Route (AWPR).

Mr Swinney said: “More widely in the NPD programme, it has become clear that a rapid reversal of the ONS’s public classification of the Aberdeen Western Peripheral Route project under the revised Eurostat rules will not be possible.

“I have asked SFT to continue to review options for the potential amendment of the AWPR project and potentially other NPD projects in the light of ONS’s welcome decision on the revised hub model.

“The Scottish Government also continues to discuss with the Treasury the budgeting implications, including for our capital spending plans, and I intend to reflect the outcomes of these discussions in the Budget in December. This will have no impact on the delivery of the project itself.”

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