PM’S WEBCAST WARNING REINFORCES NEED FOR ACCELERATED SPENDING

PM’S WEBCAST WARNING REINFORCES NEED FOR ACCELERATED SPENDING.


Seizing on comments made by Gordon Brown in a Downing Street webcast, in which he says “…it would be suicidal to put recovery at risk by suddenly cutting off the funding and investment that is supporting young people, families and businesses through the most challenging times in a generation” SNP Treasury spokesperson Stewart Hosie MP said the prime ministers comments reinforced the need for a further acceleration of capital spending into 2010/11 in order to support this objective. Mr Hosie said: “If we are to continue stimulating the economy back to growth – as the SNP Government are doing – it is vital that the UK Government brings forward a further facility to accelerate capital spending into next year. In his Pre-Budget Report in November, the Chancellor must not put recovery at risk by cutting off investment. “Otherwise, Gordon Brown’s attack on the Tories for being prepared to stop the process of economic recovery will rebound back on Labour. “The SNP Government’s acceleration of £350 million of capital spending into vital areas such as affordable housing and other infrastructure projects has helped us fight recession, boost spending, and assist the construction sector during tough times. “Clearly, these resources have been spent, which is why we need a further acceleration of capital spending into 2010/11, so that we can maintain this enhanced level of spending for infrastructure and investment next year, and support thousands more jobs. Already, the Scottish Government’s recovery plan is supporting 15,000 jobs – despite Scotland’s budget being cut in real terms for the first time since devolution by the UK Labour government.”