INDEPENDENT REPORT CONFIRMS DRAMATIC BUDGET CUTS

INDEPENDENT REPORT CONFIRMS DRAMATIC BUDGET CUTS

LABOUR CHALLENGED ON FISCAL FANTASY LAND

Scotland's budget is projected to fall by atleast £3.35 billion over the
next three years, according to an independent report by the Centre for
Public Policy in the Regions.

The report, co-written by former Labour adviser John McLaren, shows that
Scotland's budget is set to fall by 11.6% in real terms with a dramatic
cut in 2011-12.

The impartial figures expose the fiscal fantasy land of the Labour party
who continue to demand more and more spending while the Labour Government
in Westminster hold Scotland back.

Commenting on the report SNP Treasury Spokesman Stewart Hosie MP said:

"This report confirms the warnings the SNP and John Swinney have been
making for some time.

"Scotland is set to feel the impact of London's spending squeeze and the
Treasury's failure to accelerate capital this year will only exacerbate
the effects.

"Scottish Labour's fiscal fantasy must come to an end. While the SNP
Scottish Government takes responsible action to keep Scotland's finances
in order Labour continue to demand more and more money for their pet
projects."