The North East needed a big confidence boost from the Chancellor yesterday when he stood up to give his budget.
I believe that the tax cuts for the oil industry he announced plus the government’s support for a city deal for Aberdeen and Aberdeenshire gives us just that.
As the north-east’s most prominent oil and gas business figure Sir Ian Wood said, the Budget has provided an “essential lifeline” which “should help restore confidence.”
In short, it shows the North East is open for business with boosts to the economy, industry and infrastructure.
Of course, this isn’t going to turn things around overnight. But Aberdeen has ridden many storms before and I believe that, with this new package of tax cuts and investment, it can look forward to a brighter future.
The challenge now is to make sure that this is the start of something that lasts for good.
When I met oil industry leaders in Aberdeen last week, they told me that what they need right now is support and stability.
Now that relief has been delivered, they want to see a calm and settled period so the industry can reassure investors that the North East is worth developing further.
I’ve made that point to my colleagues in Westminster. And I know the Chancellor gets this.
If the industry now meets the challenge by investing in the North Sea, it makes me confident that there are many fruitful decades to come.
That’s not enough, of course. We need to ensure that the expertise in Aberdeen leaves a lasting legacy long after the oil has run out.
That’s why I was delighted to see the initial support for an Aberdeen City Deal. The aim here is to invest in the city and shire so that it truly becomes one of the great energy capitals of the world.
We need better road, rail and digital infrastructure to achieve it.
I’ve heard complaints made by our industry leaders in the North East: too often government seems to be saying don’t be successful, because if you do we’ll penalise it.
That’s not the message yesterday’s Budget delivers. Its message is that it wants to back success. Why? Because if the North East prospers, everyone across the rest of Scotland and the UK benefits.
There’s still some way to go but we’re now growing the economy back towards a more prosperous Britain.
Yesterday’s budget gives the North East a chance to lead the way.
Ruth Davidson is the leader of the Scottish Conservatives
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