Spending Review 2025: Scotland Debate

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Department: Scotland Office

Spending Review 2025: Scotland

Martin Rhodes Excerpts
Wednesday 2nd July 2025

(3 days, 6 hours ago)

Westminster Hall
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Martin Rhodes Portrait Martin Rhodes (Glasgow North) (Lab)
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It is a privilege to serve under your chairmanship, Sir John. I commend my hon. Friend the Member for Dunfermline and Dollar (Graeme Downie) for securing this important debate and for his speech highlighting what a Labour Government in Westminster can mean for our constituents in Scotland.

The spending review delivers a major boost to Scotland. Over the next three years, the Scottish Government will receive £9.1 billion of funding. That marks the largest real-terms settlement since devolution began. Labour has ended austerity in Scotland. These are not just numbers; this funding is an opportunity for real change. It must be used to strengthen the services people rely on every day: our NHS, schools, police and housing. It is now down to the Scottish Government to deliver on those matters with this funding from the UK Labour Government.

I also welcome the spending review’s creation of and support for four investment zones and green freeports, in the north-east, in Inverness and Cromarty Firth, at Forth Green and, most importantly to me, in the Glasgow city region. That includes £160 million each over 10 years. The Glasgow investment zone will focus on advanced manufacturing, a future growth sector that the city is well placed to lead, with its world-class universities and a strong pool of talent in the region. The investment zone will be focused on sites in Renfrewshire, alongside existing innovation districts and underdeveloped sites near critical infrastructure around Glasgow airport. Local partners expect it to generate at least £1.7 billion of investment and up to 18,000 full-time equivalent jobs over 10 years, and boost the region’s research and innovation economy.

In recent years, we have seen the benefits of further devolving power and funding to city regions across the UK, with the ability at local level to create and tailor policies to better serve our communities. In Scotland, however, devolution appears to have stalled at Holyrood. There is little appetite to pass power and more funding to the Glasgow city region and other communities across Scotland. I hope that the Minister will indicate that the UK Government would support further devolution to the Glasgow city region, and I hope that the Scottish Government move quickly to achieve that.

The UK Labour Government have provided the Scottish Government with a huge and historic opportunity to make progress with the commitments in the spending review to empower our city regions with more powers and funding to better deliver for our communities. In 2026, Scotland will have the chance to choose a Government who not just talk but deliver: a Scottish Labour Government who turn record funding into real results for all of our communities.