Spending on infrastructure such as roads faces delay or cancellation under plans being drawn up.
The Scottish government has admitted it does not have the capital funding it needs to meet its public commitments to major infrastructure projects.
At the same time, the motorways and trunk roads capital budget is falling from £411m this year to £377m in 2025-26.Health and social care capital spending is budgeted to fall from £554m this year to £443m next year, remaining at the lower level for three years. The Scottish government capital spending review document puts some of the blame for the changes on allocations of capital funds by the Treasury in its spending review published last autumn. These are 5% lower than the Scottish government expected.
The Office for National Statistics estimates inflation on new construction projects is running at 8%, and on housing at nearly 11%. That could have an impact on upgrading of the A9 between Inverness and Perth, the A96 between Aberdeen and Inverness, and the A75 linking Dumfries with Stranraer.However, when asked last week about specifics, Transport Scotland, the government's agency, declined to give any.
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