Oral Answers to Questions

Chris Kane Excerpts

Wednesday 14th January 2026 Commons Chamber

[Euan Stainbank (Falkirk) (Lab)]

10. What steps he is taking with Cabinet colleagues to support economic growth in Scotland.

[Chris Kane (Stirling and Strathallan) (Lab)]

14. What steps he is taking with Cabinet colleagues to support economic growth in Scotland.

[The Secretary of State for Scotland (Mr Douglas Alexander)]

Just last week, we launched the UK Government’s £140 million local growth fund, which will help to deliver economic growth to five Scottish regions. Scotland will also benefit from around £700 million of other local and regional project funding over the next three years. In addition, as we pointed out in relation to the Budget, the UK Government have provided the Scottish Government with the largest block grant in the history of devolution.

--- Later in debate ---

[Mr Alexander]

Just last week, I was with my hon. Friend in Falkirk announcing £9.8 million-worth of funding for the Forth valley region as part of the new local growth fund. Meanwhile, the UK Government are working hard to secure further investment for the Grangemouth site. Tomorrow, the Minister, my hon. Friend the Member for Midlothian (Kirsty McNeill), will be in Scotland signing a memorandum of understanding for the Forth green freeport, unlocking £25 million in capital funding to support economic growth in the region. That, frankly, is the difference that having a Labour Government with Scots at the heart can make to economies such as Falkirk’s.

[Chris Kane]

Does the Secretary of State agree that yesterday’s SNP budget, which metes out another round of civic vandalism to local authority budgets, demonstrates a failure to understand that economic growth is built from the ground up and requires well-funded local authorities delivering schools, infrastructure and clean, safe communities? Does he also agree that Scotland needs a Labour Government at Holyrood, with the same ambition for growth being shown by this UK Labour Government, if it is to unlock its full economic potential?

[Mr Alexander]

I sense that my hon. Friend has forgotten more about local government financing than John Swinney will ever know. The reality is that the First Minister has been writing budgets for 19 years in the Scottish Government, while at the same time Scottish local government has been pushed to the brink of failure. The independent analysis from the Institute for Fiscal Studies shows that Scottish local government finance is set to see reductions averaging 2.1% a year in real terms. That would require each Scottish council to increase council tax by around 8% just to hold budgets constant. My question for the First Minister is the same the day after the budget as it was the day before: “John, where’s the money gone?”