The 2021-22 Scottish Budget will provide around £1.1 billion in support for jobs and skills to help the economy recover post-Covid.

Presented by Finance Secretary Kate Forbes, the new investment will help drive economic recovery, bolster public services, and support families.

With job creation a priority, the new budget includes measures such as a commitment to launch a new Green Workforce Academy to help people secure work in the low carbon economy, a £100 million Green Jobs Fund over the next parliament, £7 million towards making Scotland a world-class hub for digital business and an additional £115 million for the Young Person’s Guarantee.

Health will receive funding of over £16 billion, an increase of 5.3% on 2020-21, along with a further £869 million to continue tackling the coronavirus, including funding for the vaccination and test and trace programmes.

This means that, over the course of this parliament, investment in health has increased by £1.8 billion in real terms – more than tripling the commitment to increase health funding by £500 million more than inflation.

Forbes said: “This budget is being delivered in exceptional circumstances as we continue to battle a pandemic that has shaken our society and economy to the core, and as we face the harmful impacts of Brexit.

“It promotes innovation and reform, new beginnings, new directions. And while it continues to target support in the immediate term, it also tracks a course over the next year to build a fairer, stronger and greener country.

“To help drive our green economic recovery I am providing the stability and certainty that businesses have asked for through the most competitive reliefs packages in the UK. There are innovative measures to promote sustainable growth and we are investing more than £1 billion in jobs and training.

“The budget sets out a distinctive Scottish pay policy that again supports the lowest paid, charting a different course to the ill-judged pay freeze announced by the UK Government. It also bolsters our health service, delivers more affordable homes, provides additional childcare places and helps young people into work.”

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However, a statement from the Scottish Fiscal Commission warned that the country’s GDP is not forecast to return to its pre-Covid level until 2024.

Commission Chair Dame Susan Rice said: “The last year has been difficult for us all, and I’m afraid it’s clear the coming year will continue to be tough. With rising unemployment, the pain has also not been shared equally. But we do see the economy gradually recovering as the restrictions are relaxed.

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The budget also proposes providing £98.2 million to improve Scotland’s digital infrastructure and deliver access to high-quality broadband and mobile coverage.

Business support remains a priority and the Finance Secretary confirmed that the Local Authority Discretionary Fund will be doubled to £60 million in this financial year to allow councils to respond to local needs.

In addition, businesses eligible for the Strategic Framework Business Fund will receive full Level 4 payments on 22 February, regardless of any future changes to local restrictions.

In support of the Scottish Government’s Budget announcement, ScotlandIS Interim CEO Karen Meechan said: “Scotland’s dynamic digital and tech sector will be at the forefront of the nation’s recovery and it is positive to see this reflected in the Scottish Government’s Budget.

“We welcome the Scottish Government’s sustained investment in the Scottish digital and technology sector. Building on The Logan Review, the new Ecosystem Fund and SME support funding will create new opportunities for Scottish tech businesses to be supported in their growth and for all SMEs to benefits from new technologies.”