To ask the Scottish Executive by how much the budget for Highlands and Islands Enterprise will fall over the period of the current spending review, from 2007-08 to 2010-11, in (a) real and (b) cash terms.
The latest Gross Domestic Product deflators issued by Her Majesty''s Treasury shows 2008-09 as base year, 2009-10 as 1% and 2010-11 as 1.5%.
The right hand column of the table below shows the effect of applying these deflators to the Highlands and Islands Enterprise budget. The baseline is the financial year 2007-08.
| Cash Budget £ Million | Cash Terms Reduction Against 2007-08 | Real Terms Reduction Against 2007-08 |
2007-08 | 89 | - | - |
2008-09 | 77.8 | £11.2 million | £11.2 million |
2009-10 | 74.8 | £3 million | £3.03 million |
2010-11 | 74.3 | £0.5 million | £0.507 million |
The reform of Highlands and Islands Enterprise has developed a sharper focus on its key role of supporting sustainable economic growth while continuing to support fragile rural communities. This has led to many success stories not least attracting Welcon Towers to Machrihanish to save and develop the wind tower manufacturing facility.
Highlands and Islands Enterprise should not be viewed in isolation however, as it is only one arm of the very significant package of funding we have in place to support and stimulate economic growth in the Highlands and Islands of Scotland. Skills Development Scotland, the newly established business gateway for the area, the Road Equivalent Tariff Scheme and the Town Centre Regeneration Fund together bring a funding investment of £26.7 million this year, in addition to that allocated to Highlands and Islands Enterprise
Businesses in the area also benefit from a range of non-domestic rates relief including the Small Business Bonus Scheme, which alone amounts to an estimated £14.4 million in 2009-10, Rural Rate Relief and Empty Property Relief.
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