The Scottish parliament building at Holyrood

Budget 2021: devolved nations receive £2.4bn in additional funding

Scotland, Wales and Northern Ireland are to receive an additional £2.4bn in the next financial year under the Barnett formula as Rishi Sunak increased funding to the devolved administrations.

Holyrood will receive an additional £1.2bn, the Welsh government £740, and the Northern Ireland executive £410m.

The Barnett formula determines that the devolved governments automatically get a share of increased spending in England. As a consequence of the England-only spending commitments in the budget, which includes spending on coronavirus, the three areas will get more money.

The chancellor also announced that the devolved administrations would receive £1.4bn in funding for 2021-22 outside the Barnett formula. He announced a £27m investment in renewable energy in Aberdeen, £5m for a “global underwater hub” in Scotland, £4.8m to support the development of a demonstration hydrogen hub in Holyhead, Anglesey, and as much as £30m for a “global centre for rail excellence” in Neath Port Talbot in south Wales.

“Our future economy depends on being a United Kingdom. Businesses in Scotland, Wales and Northern Ireland have contributed to and benefited from our coronavirus response,” Sunak said.

“Central to that has been a Treasury that acts for the whole United Kingdom. That it not a political point, that is an undeniable truth. The majority of today’s budget measures will apply directly to people in all four nations of the United Kingdom.

“I am taking further specific steps with three city and growth Scottish city deals, three more in north Wales, in mid-Wales and Swansea Bay, and funding for the Holyhead ydrogen hub, a centre of rail excellence in Neath Port Talbot.”

He told Scottish voters: “The UK government has protected millions of jobs and livelihoods across Scotland, and the strength and stability of our economic union will ensure we bounce back from this pandemic together.

“This budget will ensure the people of Scotland continue to be supported through our plan for jobs, committing more than a billion pounds in extra investment and funding to help fuel the UK’s recovery.”

The SNP accused Sunak of overseeing “a return to Tory austerity cuts”.

To the people of Wales the chancellor said: “Throughout the pandemic, the UK government has stepped in to support millions of lives and livelihoods across Wales. We are also investing millions in Welsh towns and cities, key infrastructure and green industries that will be vital to long-lasting economic growth.”

He also said Downing Street would continue to work with the Welsh government to establish at least one freeport in Wales as part of the aim “to make Wales a premier destination for trade and investment”.

The Welsh government finance minister, Rebecca Evans, said: “The chancellor has splashed the cash, but none of it on capital investment by the government. The Welsh government will get precisely nothing in terms of additions to our capital budget.”