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Scottish budget: Government increases spending on roads, but reduces it on skills and freight
Scottish Deputy First Minister Shona Robison delivered the Scottish Budget on 19 December outlining fiscal plans for 2024-25, including a spending increase of over £200 million on trunk road safety, adaptation, maintenance and improvement, including to continue the A9 dualling programme.
Despite these positive measures, the only mention of freight was an unexpected fiscal cut to a line that was previously £700,000 per year and is now zero.
Logistics UK understands that this is the Scottish government ending its contribution to the UK-wide Mode Shift Revenue Support (MSRS) scheme, which aims to assist logistics operators to make greater use of rail and inland waterways.
On education and skills, the budget of the Scottish Funding Council (which funds further and higher education, including apprenticeships) has been cut by over £100 million and the lifelong learning budget is subject to a £20 million cut.
“While we welcome the increase to road spending, including on the long-awaited dualling of the A9, we are disappointed that there was no funding for other infrastructure schemes, and that the skills budget is being cut,” said Alexandra Herdman, Senior Policy Manager at Logistics UK.
“With regards to the £700,000 cut to ‘support for freight industry’, Logistics UK CEO David Wells this week wrote to Shona Robison MSP, Deputy First Minister and Finance Secretary for the Scottish government.
“David Wells has requested a meeting with the Scottish government to discuss this cut and highlight the importance of modal shift to reducing emissions and congestion, as well as the vital role logistics plays in the economy and workforce of the Scottish population.
“We will be asking how the cut is compatible with the Scottish government’s High level Output Statement for the railway, 2024-2027, which reasserts support for rail freight growth. And we will, of course, feed back to our members when we receive a response.”
The Scottish Parliament will debate and vote on the Scottish Budget Bill in February.
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Published On: 04/01/2024 14:00:00
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In brief
Stena Line signs 77-year deal with Peel Ports to operate from Heysham Port until 2100
The Swedish ferry’s twice daily freight service from Belfast-Heysham provides a crucial trade corridor between Northern Ireland and the rest of the UK and this new long-term, collaborative deal further strengthen the two organisations’ long-term relationship.
Last year, Stena Line announced it will develop two new-build state-of-the-art ‘NewMax’ ferries as part of its multi-million-pound investment in the Belfast-Heysham route, which will boost freight capacity by 80%.
These hybrid ferries – due to begin on the route in 2025 – will operate on methanol fuel marking a key milestone in Stena Line’s roadmap to sustainable shipping.
Peel Ports has also promised to invest in a ‘smart gate’ automatic check-in system to improve customer experience and to increase parking for trailers to accommodate the additional capacity.
“Our business on our Belfast-Heysham route has thrived in recent years and is a vital connection for freight transport across the Irish Sea,” said Niclas Martensson, CEO of Stena Line.
“With the upcoming introduction of our NewMax hybrid ships, this route represents a unique opportunity for Stena Line to offer our freight customers more sustainable transport between Northern Ireland and the rest of the UK and will be a key milestone in our sustainability journey.”
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