The north-east needs a £1 billion promise over the next 10 years to support the next generation of energy jobs and industry, a business group claims today.
The money is part of a four-point plan also aiming to protect troubled high streets, rail connections and the wider economy.
The big request comes the day before SNP finance secretary Shona Robison is due to set out what will be a tough budget at Holyrood.
She will have to answer questions posed by the surprise council tax freeze announced at SNP conference in Aberdeen in October, which left councils screaming for money to fill the massive gaps.
Meanwhile, the prospect of income tax increase or new bands has reportedly led to tension in the government.
Could tax go up?
Aberdeen & Grampian Chamber of Commerce said any higher income or property taxes will reduce people’s spending power and “inhibit” the ability to retain talent.
The group also wants the government to “raise its ambition” in the shift from fossil fuel reliance in the economy.
In a letter to Ms Robison, chambers chief executive Russell Borthwick stated: “It has become very clear that a Just Transition Fund disbursing just £50 million annually to our region to deliver this ambition — arguably the most important task of governments globally — is extremely limited.
“The Scottish Government should at least double the Just Transition Fund to deliver £1billion in projects over the 10-year funding period.
“This would represent a sound investment in Scotland’s future that will deliver significant return over the long term.”
The future of Union Street
The group’s third request is to freeze business rates and support town centres, building on the gains from the project to improve Union Street.
Finally, the government is being asked to speed up rail improvements in the region.
The chamber is working with the Campaign for North East Rail to make the case for passenger and freight links north of Aberdeen into Buchan.
It’s not just businesses calling out for more money. In recent days, the Scottish Police Federation warned officer numbers will fall without more support.
The force wants £128 million more than last year.
Police Scotland is considering the closure of 29 buildings across the country, including locations in Aberdeen.
Economists warn the government is staring at a £1.5 billion funding blackhole.
The Fraser of Allander Institute said the budget is likely to be the most challenging since the Scottish Parliament was established in 1999.
Ms Robison has blamed decisions in the UK budget which left her with little room for manoeuvre.
On the BBC’s Sunday Show, she said cash will be used to “protect people and public services”.
Institute director Mairi Spowage said: “Significant spending cuts are also likely to be required – the deputy first minister has the unenviable task of choosing where the axe will fall.”
Responding to previous concerns about the budget, a Scottish Government spokesperson said: “Scotland is facing the most challenging budget settlement since devolution because of sustained high inflation and a UK Government autumn statement that failed to deliver the investment needed in Scotland’s public services.”
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