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But we must sustain this effort over the long term if we are to make a lasting difference to the UK’s productivity performance.
In addition to the extra spending power made available to the Scottish Government, Scotland’s cities will continue to benefit from further commitments from the UK government, with funding confirmed for city deals in Aberdeen and Inverness, negotiations for a city deal with Edinburgh ongoing and the UK Government prepared to consider proposals from Tay Cities.
First, the public finances should be returned to balance as early as possible in the next Parliament, and, in the interim, cyclically-adjusted borrowing should be below 2% by the end of this Parliament.
As the effects of uncertainty diminish, the OBR forecasts growth recovering to 1.7% in 2018, 2.1% in 2019 and 2020, and 2% in 2021.
I can announce today a new National Productivity Investment Fund of £23 billion to be spent on innovation and infrastructure over the next five years.
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