GRANTS awarded to companies in Scotland under the Regional Selective Assistance (RSA) scheme have increased by nearly 10 per cent, rising to £57.8 million in the 2014/15 period.
Scottish Enterprise, which awards the funds, said the rise underscores Scotland’s attractiveness as a place for business investment.
The RSA grants issued for commercial projects by the quango are expected to create or safeguard 8,991 jobs across 121 companies.
This marks a significant leap on the 6,161 created by 117 projects in 2013/15, according to the latest RSA report released by Scottish Enterprise, published yesterday.
The report comes after it was announced in July that 2014/15 had been a record year of inward investment into Scotland. Figures released by Scottish Development International then signalled the organisation helped 91 companies invest in Scotland over the period –17 per cent up on the previous year.
Publishing its report yesterday, sister body Scottish Enterprise highlighted the “crucial role” that RSA funding plays in attracting inward investment.
Planned capital expenditure by foreign-owned companies dropped back to £168m in 2014-15 from £180.5m the year before. But the number of planned jobs by foreign-owned companies which received RSA grants increased to 3,430, compared with 2,786 in 2013/114.
The big leap in planned capital expenditure by firms receiving grants came from UK (non-Scottish) owned companies, rising to £152.1, from £19.3m the year before. The number of jobs planned by these organisations also jumped massively, to 4,086 from 1,395, accounting for nearly half (46 per cent) of the total number planned by companies which received RSA backing.
Planned capital expenditure by Scottish-owned businesses increased to £76.6m from £67.3m, the report said. However, the number of jobs planned by Scottish-owned companies receiving RSA support fell, coming in at 1,475 compared with 1,980 planned in 2013/14.
Meanwhile, analysis of the data by Scottish Enterprise signalled that SMEs (small to medium-sized enterprises) accounted for 61 per cent of the RSA offers in 2014/15, representing a total grant of nearly £13m. These projects involve planned investment of £67.5m with the aim of creating or safeguarding 1,367 jobs.
Across the board, grants were awarded to companies in a broad range of “priority” sectors, including life sciences, energy, food and drink, and financial services.
Scottish Enterprise chief executive Lena Wilson said: “We’ve extended our reach to Scottish companies, especially SMEs, to help them achieve their growth potential.
“We’re also attracting high-value investments from foreign-owned companies in a highly-competitive, global market.
“RSA is one of the most important tools we have at our disposal and this report demonstrates conclusively that our efforts are impactful.”
Deputy first minister John Swinney said: “These figures demonstrate the business sector’s continued – and growing – confidence in Scotland’s attractiveness as a country for investment.
“This confidence is built on the fact that Scotland now has the longest period of uninterrupted growth since 2001, of which we are rightfully proud. RSA supports investment in Scotland’s economy and creates jobs for our people.”
Mr Swinney noted that youth employment in Scotland is at its highest since 2005, youth unemployment at its slowest since 2008, and overall unemployment is also down.
He added: “These are encouraging signs of an improving economic landscape in Scotland, following on from recent official statistics showing the economy grew by 0.6 per cent in the first three months of the year.”
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