UK ECONOMY PAYS HIGH PRICE FOR DECADE OF LOW INVESTMENT

UK ECONOMY PAYS HIGH PRICE FOR DECADE OF LOW INVESTMENT

RESEARCH SHOWS BROWN’S ECONOMIC BLUNDERS BEGAN IN ‘97

SNP Treasury Spokesperson, Stewart Hosie MP, has hit out at the UK
Government after figures released by the SNP highlighted Labour’s
legacy of underinvestment in the manufacturing sector and the bad
decisions which made the UK’s recession longer an deeper than any
other G20 country.

Using the OECD’s Gross Fixed Capital Formation (GFCF) figures, which
details each country’s investment in assets such as manufacturing
equipment and plant machinery, the attached analysis shows:

• Since 1997, the UK has had the lowest average investment of any G20
OECD 12 country in GFCF as a percentage of GDP

• The average percentage of investment amongst OECD G20 has been
21.1%. The UK invested just 17%

• For the past six years, from 2003 to 2008, the UK has had the lowest
investment in GFCF of any G20 OECD country

• Between 1997 and 2000 only Russia invested less and in 2001 and 2002
only Turkey invested less

• Even on the broader G20 list of counties, the UK is near the bottom.
Only Argentina and Brazil invested less

• Since 1997, there hasn’t been a single year since Gordon Brown was
either Chancellor or Prime Minister that the UK’s investment level
wasn’t below the EU average.

Commenting, Mr Hosie said:

“The Prime Minister is fooling no-one when he claims the dire state of
the UK’s economy is the fault of the global recession. These figures
prove that the Labour Government, with Gordon Brown at the helm, has
presided over a decade of under investment in UK industry.

“It is no coincidence that the UK was the first G20 country into
recession – and after 6 consecutive quarters, will be the last one
out.

“Year after year, inadequate amounts were channelled into supporting
businesses to acquire machinery and invest in their long term
survival. This situation was made even worst by Labour’s failure to
ensure a sensible business tax and allowance regime.

“Is it any wonder a million manufacturing jobs have been lost under a
decade of Labour rule and the unemployment rate across the country is
now higher than it was under the last Tory Government?

“While the SNP Government has been doing what it can – investing in
key sectors such as life sciences where Scotland has become a world
leader – the dismal state of the UK’s finances have confirmed exactly
why Scotland must have control of our own finances.

“In an independent Scotland, we would have the levers at our disposal
to invest in long term prosperity while times were good. Instead,
locked into a dysfunctional union, Scotland is now saddled with her
share of an astronomical debt and previous little to show for it.

“Westminster is holding Scotland back.”