THE PEOPLE WILL CAST JUDGEMENT ON LABOUR’S CUTS BUDGET.

THE PEOPLE WILL CAST JUDGEMENT ON LABOUR’S CUTS BUDGET.

DARLING AND BROWN DECISIONS WRONG FOR SHORT- AND LONG-TERM

Previewing the debate in the House of Commons on the UK Budget, First Minister of Scotland and Banff & Buchan MP Alex Salmond – who is seeking to participate in the debate – said:

“It used to be said that the Budgets first reported as a triumph end up as a flop. In this case, what first appeared a disaster quickly descended into catastrophe.

“Gordon Brown and Alistair Darling have made exactly the wrong choices for both our short- and long-term needs.

“Within hours of the Budget, the IMF contradicted the Treasury and issued their forecast of continuing recession in 2010 – also reflecting the OECD’s expectations.

“But even if everyone is out of step except the Chancellor, imposing a £5 billion deflation package next year while the economy is at best struggling to re-establish growth is exactly the wrong policy prescription – and could only have the effect of throwing the economy back into reverse.

“In Scotland, the £500 million of Labour cuts would destroy 9,000 jobs.

“This contrasts completely with the strategy of President Obama, who is putting a $787 billion stimulus package into the economy to protect and create jobs – which rightly is focussed on next year, as well as this year.

“The UK Government are also making the wrong choices for the longer-term. We need to change the profile of public spending by scrapping unnecessary, unaffordable, ‘white elephant’ projects such as the Trident replacement and ID cards – not by slashing front-line services like health and education, and capital investment.

“The reality is that Gordon Brown and Alistair Darling are proposing real terms cuts in Scotland’s budget above and beyond even the scale imposed by Margaret Thatcher. It is clear that the Iron Lady’s legacy is safe in New Labour’s hands.

“A clear choice has emerged from the ashes of Alistair Darling’s devastating budget.

“The SNP Government want the required savings to be made by the UK Government abandoning its foolhardy £25 billion plan to replace the Trident nuclear missile, saving up to £100 billion over its lifetime. And we are also calling on Labour to drop their proposals to spend £5 billion on unwanted and unnecessary ID cards.

“The people of Scotland have the opportunity to vote on these choices at next month’s European elections, and in the General Election next year. The people will choose between the UK Government’s attack on education and health spending, and the SNP Government’s call to ditch the Trident replacement programme and ID cards.

“Labour are presiding over the first real terms fall in Scotland’s public spending since the dark days of the Tories’ spending plans in the 1990s, which will be hugely damaging to jobs and services.

“The UK Government’s catastrophic financial failure underlines the need for Scotland to have responsibility to run our own affairs – with the ability to take the decisions needed to reflate our economy, contribute to recovery, and overcome the Downing Street downturn.”