The Impact of Infrastructure Investment by the Scottish Parliament Since 2000

Since devolution in 1999, Scotland has made significant investments in infrastructure, with projects in roads, rail, energy, and digital connectivity reshaping the country’s economic landscape. This targeted approach aims to improve quality of life, promote economic growth, and transition towards sustainability. Here, we assess the impact of these expenditures and how Scotland’s approach diverges from the broader UK infrastructure strategy.

Audit Scotland have commented on infrastructure’s economic impact, stating that projects have a potential economic multiplier, with “every £1 of infrastructure investment returning approximately £1.50 in economic benefit,” underscoring the value of these investments not only fiscally but also in promoting regional economic stability.

Public infrastructure creates profound, long-term societal value, yet it often goes uncelebrated. This raises an important question: when we finally invest in roads, energy, and digital infrastructure, why does society undervalue it?

1. Roads and Transportation

The Scottish Government’s road investments have included major upgrades, like the A9 and A82 projects, which improve connections between rural areas and major urban centers. These projects enhance road safety, reduce journey times, and support economic integration across regions. For example, the upgrades on the A82 have proven essential for tourism and local business, linking the Highlands with the central belt. According to Scotland’s Infrastructure Investment Plan (IIP), such projects contribute not only to local economies but also improve the daily lives of residents by enhancing accessibility and safety.

2. Rail Infrastructure and Decarbonisation

Scotland’s rail network investments, such as the Rail Decarbonisation Action Plan, align with the country’s ambitious net-zero targets. With over £550 million allocated to rail upgrades, including electrification projects, Scotland is ahead of the UK in integrating greener transport solutions. According to Transport Scotland, rail improvements reduce reliance on cars, lowering emissions and contributing to cleaner urban environments. Academic studies link these changes to long-term economic benefits, as efficient and sustainable transport encourages job growth and reduces congestion.

3. Energy and Sustainability

Energy infrastructure spending has focused heavily on green initiatives, such as the Low Carbon Infrastructure Transition Programme (LCITP), which promotes renewable energy projects and heat networks. The LCITP received around £50 million to support projects that push Scotland toward net-zero emissions by 2045, a more ambitious target than the rest of the UK. Morag Watson from Scottish Renewables noted that investments in green hydrogen and renewable heat will be vital in achieving these targets, with long-term benefits estimated in the billions for the economy and hundreds of thousands of potential jobs by 2050.

Morag Watson, Director of Policy at Scottish Renewables, on the energy sector:

“With green hydrogen set to play a key role in our future energy system, we welcome the Emerging Energy Technologies Fund and encourage the Government to invest in developing a green hydrogen economy in Scotland. Realising this potential could deliver 310,000 jobs and £25 billion in Gross Value Added by 2050.” 1

Watson emphasised that “the £1.6 billion funding announced to decarbonise heat in buildings over the next five years will enable the renewables industry to work with the Government in delivering clean, affordable heat to Scotland’s homes”

4. Digital Connectivity and Broadband

Scotland’s £600 million Reaching 100% (R100) programme aims to provide superfast broadband to rural and underserved areas, ensuring digital connectivity across all of Scotland. The R100 programme addresses gaps that private telecom providers often overlook, reflecting Scotland’s priority on digital inclusivity. According to the Scottish Government, enhanced digital access strengthens local economies, enabling remote work, supporting small businesses, and making rural living more sustainable.

Measuring Impact: Fiscal and Social Benefits

Investing in infrastructure offers measurable returns both economically and socially.

Socially, improved connectivity and greener public transport create more equitable access to resources and reduce environmental impacts, contributing to Scotland’s broader goals of sustainability and inclusivity.

Conclusion

Scottish infrastructure spending highlights a distinct approach from the rest of the UK, with a strong emphasis on sustainable, inclusive growth. The benefits extend beyond immediate economic returns, contributing to a resilient, low-carbon future that aligns with Scotland’s long-term vision.

However, do we notice?

1 https://www.scottishconstructionnow.com/articles/33bn-capital-spend-outlined-in-new-infrastructure-investment-plan