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Scottish local government and industry benefit greatly from the government's present funding formula says George Kynoch.

The Scottish industry and local government minister was commenting on the Government Expenditure and Revenue in Scotland, 1994-95 report, published today by The Scottish Office.

'Today's report shows that identifiable spending per head on trade, industry, energy and employment was 68 per cent higher in Scotland than in the UK as a whole in 1994-95. This works out at an average of 185 for every single civilian employee in Scotland and is worth £410m.

'This generous funding has been money well spent. It helped Scotland produce record manufacturing exports of over £14bn in 1994 and £16bn in 1995. It also enabled Scotland to sustain its competitive offer to potential inward investors through further improvements to the skills of our labour force and through the provision of high quality sites and other support. The benefits have been evident for all to see: 84 projects in 1994-95, involving planned investment of nearly £1bn and the creation/safeguarding of over 12,500 jobs.

'In the area of local government, the people of Scotland are benefiting from the extra provision which has helped maintain a wide range of local services in Scotland. Total government support for local authority expenditure was over £5bn - that is, over 1,000 per head. It is the case that around 37% of the resources available to the secretary of state are distributed to support local authority current expenditure. This is around 30% higher per head of population than in England.'

-- Government Expenditure and Revenue in Scotland, 1994-95 is available, free of charge, from the Economics Advice and Statistics Division, Scottish Office Education and Industry Department, Meridian Court, 5 Cadogan Street, Glasgow. Enquiries should be by post only and should enclose an A4- sized SAE.

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