INDEPENDENT ADVISOR CONFIRMS LABOUR GOVERNMENT’S CUTS FOR SCOTLAND

INDEPENDENT ADVISOR CONFIRMS LABOUR GOVERNMENT’S CUTS FOR SCOTLAND

A report by Professor David Bell for the Scottish Parliament’s Finance Committee has confirmed that the UK Labour government’s cuts are hitting the Scottish budget and warns of further cuts to come.

The report describes 2010-11 as “a turning point – where Scotland passes from a benign public spending environment to one which will be as tough as any experienced during the 1970s and 1980s.”

Discussing the Scottish budget Professor Bell states “Additional Efficiency savings at a UK level have had a negative impact on the block grant to the Scottish Government via the Barnet Formula.”

The report also comments on UK financial management saying that the UK has experienced “almost the worst deterioration in its public finances of all OECD countries.”

Bell also warns that ending Government spending too quickly – adding to the Scottish Government’s call for the acceleration of capital to continue for a further year. Professor Bell states “taking Government spending away too quickly or increasing taxes too rapidly might cause the economy to tip into a second recession.”

Commenting on the report SNP Finance Committee member Joe FitzPatrick said:

“This report will leave people in no doubt that Scotland’s budget has been cut this year and will be cut in future years.

“Labour’s fantasy figures have been exposed and the financial mismanagement of the UK is on show for all to see.

“Importantly Professor Bell’s report adds to the calls for capital to be accelerated in the coming year to ensure the Scottish Government can continue to invest in recovery.

“Ending the enhanced public sector investment that the Scottish Government are delivering could choke off recovery and prolong recession.

“All parties must support the Scottish Government’s call for the UK Government to allow continued capital acceleration, so that Scotland can continue to build a strong recovery."