CHANCELLOR ACKNOWLEDGES RECESSION FAR FROM OVER.

CHANCELLOR ACKNOWLEDGES RECESSION FAR FROM OVER.



‘TIME TO RULE OUT CUTS TO SCOTLAND’S BUDGET’.

SNP Treasury Spokesperson, Stewart Hosie MP, has seized on a retreat by Chancellor of the Exchequer, Alistair Darling, who today (Sunday)acknowledged that Scotland was likely to remain in recession until 2010. The Chancellor had previously asserted that he thought recovery would begin in the second half of 2009. Commenting, Mr Hosie said:

“Despite all the international grandstanding we have seen this week, the fact remains: hardworking Scots are struggling to make ends meet and it isn’t going to get any easier anytime soon.

“As the economy slid into recession, with every on-the-hoof policy, came the assertion the downturn would be short and shallow. “It is now clear to everyone, even the Chancellor, that this is not the case. Indeed, recent IMF projections indicate that the UK will be the last of the major economies to come out of recession, contracting 3.8% this year, and will be the only major economy to continue to be in recession next year.

“The VAT holiday has not worked. Slashing the interest rate has not worked. If we are to emerge from this recession any time soon, the Chancellor must take action that will work. “He should start by ruling out plans to slash Scotland’s budget by £1bn in the teeth of recession.

“Over the last few days Gordon Brown has spoken enthusiastically about the stimulus package planned for America by President Obama – but there is clear blue water the width of the Atlantic between President Obama’s $787 billion stimulus package, which will support some 3.5 million jobs nationwide, and the budget-cutting response of the Labour Government.

“Instead of mirroring President Obama’s significant stimulus that equates to 5.5% of the US GDP that will see $3.8bn (£2.6bn) to the state of Maryland, which has a similar population to Scotland’s, Brown is slashing the Scottish budget by £1 billion in 2010/11 and 2011/12, which could cost 8,700 Scottish jobs.”