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Unspent fossil fuel levy
16/04/2009
Finance Secretary John Swinney will today renew Scotland's claim to £150 million of unspent Fossil Fuel Levy.
Giving the David Hume Institute lecture, Mr Swinney will emphasise the need to allocate every pound of available public money to support Scottish economic recovery.
Speaking on 'Scotland's financial future' Mr Swinney will expand on the text of a letter to Chancellor Alistair Darling calling for bold targeted measures to be taken at next week's budget.
He will say:
"I have written to the Chancellor urging him to take bold targeted measures at the Budget. We want him to take the steps that will enable us to provide a boost to the Scottish economy and support employment and output at this critical time.
"I have also urged the Chancellor to make available to the Scottish Government, Scotland's resources from the Fossil Fuel Fund. This fund currently stands at £150 million and is intended to support investment in renewable energy but is locked in a Treasury bank account. Such investment would provide a vital boost to the Scottish economy at this time. However, under current HM Treasury rules the Scottish Government is unable to access these funds without detriment to other spending across the wider Scottish Block.
"The pressing economic challenges we face and the tightening financial climate make it absolutely crucial the Treasury works with the Scottish Government to find an agreement which allows us to spend the money - and spend it now.
"At a time when the UK Government is borrowing billions, it is right that we should be able to make full use of Scotland's resources. Freeing up these millions would deliver a huge boost to our renewables sector. The Fossil Fuel Levy funds must now be unlocked to benefit the economy and environment in Scotland. It is a point the Chancellor can and must address when he delivers his budget next week."
Fossil Fuel Levy funds are not available to the Scottish Government as spending in addition to existing budgets.
Mr Swinney will be speaking at the David Hume Institute Lecture entitled 'Scotland's Financial Future'. This will take place at the Royal Society of Edinburgh, 22-26 George Street, on Thursday April 16, 2009 at 17:30.
The Scottish Government announced plans to help create thousands of jobs - a Greener Deal for Scotland - in February 2009.
Current Treasury rules on Departmental Expenditure Limits (DEL) mean that Fossil Fuel Levy (FFL) surplus resources, if released to Scotland now, would not be additional to Scotland's block grant. This is an administrative arrangement. To enable FFL funds to be used for additional activity in Scotland would require the Treasury's agreement to increase Scottish DEL.