Shona Robison's draft Scottish Budget yesterday revealed a mixed bag for the North-east - but included a promising £150million additional investment in offshore wind.
The finance secretary disclosed details of her draft Budget for next year to the Scottish Parliament on Wednesday.
While she promised an extra £2billion in funding for the NHS and a £768million investment in affordable housing, Ms Robison also confirmed plans for a new Offshore Wind Hub based in Aberdeen.
The hub, part of a £150million investment in offshore wind and supply chain, will help various industry bodies collaborate and slash red tape delaying projects in the sector.
Reacting to the Budget, Aberdeen & Grampian Chamber of Commerce chief executive Russell Borthwick said: “We welcome the news that the Scottish Government plans to open a new Offshore Wind Hub here in the North-east. It’s a vote of confidence in this region, which must now be backed up with more funding to drive the transition. We look forward to working with government to ensure any additional resource is deployed effectively to unlock private investment.
“While £150million extra investment in the offshore wind supply chain suggests the Scottish Government is putting its money where its mouth is, only a small uplift in Just Transition Fund spending next year is extremely disappointing in terms of the transformation our region needs.
“On income tax, while the number of bands won’t increase, nor will the rates, the Scottish Government has missed the opportunity to create the simplified, competitive tax environment we need in this country to attract and retain talent.
“Hospitality businesses who have endured the toughest few years will receive some rates relief from next year – but it’s limited in its scope and won’t extend to many major employers that have been badly stung by the recent UK budget.
“More headroom for capital spending is a good thing, but the devil will be in the detail around how much of this will be put towards improving infrastructure in Aberdeen City and Shire.
“Scotland’s cultural sector is a precious and valued part of our economy – and a key driver of footfall to our town and city centres. It’s good to see an increase in the arts and culture budget and progress towards delivering an additional £100 million for the sector, something our members were keen to see.
“Reversing previous cuts to affordable housing should be welcomed and will help to stimulate the construction sector and deliver much-needed homes. However, the Scottish Government can turbocharge this part of our economy further still by removing regulation and streamlining planning – delivering more homes across all tenures.”
ETZ Ltd chief executive Maggie McGinlay also welcomed the offshore wind investment.
She said: “The decision to locate a new Offshore Wind Hub in Aberdeen is hugely welcome and a positive step toward the North-east of Scotland positioning itself as an internationally recognised renewables energy cluster, particularly for offshore wind. We will work closely with the Scottish Government to ensure this Hub and the additional £150million earmarked for offshore wind in the coming year are channelled effectively.
“The importance of speeding up the planning and consenting of offshore wind projects, so they are commercially available, is vital if Scotland is to emerge as global leaders in this sector. Therefore, it makes perfect sense to locate this new body in a region that has proximity to the vast majority of offshore wind projects in Scotland and is home to the highest concentration of energy supply chain companies in the UK.
“Following the UK Government decision to locate GB Energy in the city and the fact a range of the key energy industry and innovation support organisations are already based here, the North-east of Scotland is an energy ecosystem without rival and the most attractive location in Europe to invest in low carbon technologies.”