SPENDING CUTS WILL ONLY ADD TO ANXIETY OF HOUSEHOLDS AND HIGH STREETS.

SPENDING CUTS WILL ONLY ADD TO ANXIETY OF HOUSEHOLDS AND HIGH STREETS.

DARLING MUST RULE OUT CUTS AND LOOK TO US FOR STIMULUS MODEL

SNP Treasury spokesperson, Stewart Hosie MP, has expressed concern over Treasury trails of the Budget saying that that Chancellor is set to cut public spending by £15bn in the teeth of recession. The SNP have urged the UK Government to deliver a fiscal stimulus similar to the approach taken by the US Government.

There is growing opposition to the cuts with unions and business organisations both warning of their potential harm. Business Secretary Lord Mandelson acknowledged yesterday (Sunday) that there was also mounting public concern.

Mr Hosie said:

“Slashing public spending in the teeth of recession will only add to the anxiety of households and high streets.

“First, the Chancellor told us this would be a short sharp recession, while every independent authority suggests it is going to be long and deep. Now, he tells us efficiency savings are the way to go despite serious warnings from union leaders, business organisations and the governments of Scotland, Wales and Northern Ireland.

“Just weeks ago Gordon Brown was gallivanting around the globe calling for a massive fiscal stimulus, but now Alistair Darling is doing the opposite.

“The £15bn cut exceeds the £12.5bn value of the UK Government’s VAT cut and risks negating any good this cut may have done.

“In the teeth of a recession, this dangerous move will seriously set back economic recovery.

“The Chancellor must look to America where President Obama has introduced an economic stimulus package worth $787bn and more than half of that is being spent at State level.

“The state of Maryland, for example – which has a similar population to Scotland – will receive some £2.6bn extra funding, supporting 66,000 jobs over the next two years. Yet in the UK, Alistair Darling’s Budget is proposing to cut Scottish public spending from 2010 by £500m a year, which would destroy 8,700 jobs in Scotland.

“There is clear blue water the width of the Atlantic between President Obama’s stimulus package, which will support some 3.5 million jobs nationwide, and the budget-cutting response of Labour.”