Scottish budget delivers digital mixed picture

Sofia Villegas December 10, 2024 in Business and industry, News - 3 Minutes

Fiscal exercise unveiled in parliament last week by minister Shona Robison included significant backing for small firms specialised in AI and other emerging technologies, while cutting funding for digital strategy

National spending plans set out last week by the Scottish Government included hundreds of millions of pounds to invest in emerging technologies and boosting the country’s credentials as one of the best environments for start-ups. But, elsewhere, the devolved administration’s fiscal exercise more than halved support for digital strategy.

Delivering the draft budget in parliament, finance secretary Shona Robison said that a “thriving economy is not an afterthought”, adding the Scottish Government shares employers and investors “ambition”.

Funding of £321m would help enterprise agencies deliver support for businesses to start and scale up, boost productivity, access funding and attract investment, according to Robison. It will also support emerging tech including artificial intelligence and robotics, and programmes like Techscaler – a Scottish Government initiative that awards research grants and helps connect start-ups with support and advice.

Robison also pledged £15m to expand support for female entrepreneurs, boost the economic impact of universities, and fund the development of business clusters in advanced manufacturing and deeptech – a term which refers to advanced technologies such as AI and quantum.

However the total digital spending plan allocated to the deputy fist minister’s economy portfolio, which is responsible for delivering investment and economic growth across the country, has been slashed by more than £110m, from £210.3 in the 2024-2025 budget to £98m for 2025-2026. This spending includes money allocated for digital strategy, digital connectivity and the digital economy.

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The budget also announced £114m for digital health and care, vowed to expand the Digital Evidence Sharing Capability system “to support the quicker resolution of cases” and supported the justice system’s digital transformation with around £5m.

The budget also pledged £100m for the continued rollout of digital connectivity programmes, which came under fire earlier this year.

The Scottish Government’s flagship connectivity project the R100 programme, which plans to provide broadband speed to every area in Scotland, was initially set to be concluded by 2021 but due to legal challenges with contracts in northern areas the scheme’s deadline was delayed to 2028.

However, the budget fell short of announcing support for digital inclusion programmes, despite a recent report from the auditor general showing one in six Scottish adults lack the digital skills needed for everyday life, warning it could be impacting their human rights.