LABOUR’S ‘DIVIDING LINES BILL’ PUTS ECONOMIC REOCVERY AT RISK

LABOUR’S ‘DIVIDING LINES BILL’ PUTS ECONOMIC REOCVERY AT RISK

SNP TREASURY SPOKESMAN PREVIEW FISCAL RESPONSIBILITY BILL

SNP Treasury Spokesman, Stewart Hosie MP, will today (Tuesday) warn that the swingeing cuts to public investment set out in the Fiscal Responsibility Bill risk sucking the life blood out of Scottish economic recovery.

The Bill – which sets out a statutory basis for reining in the UK Government’s record deficit - will be debated in the House of Commons this evening.

Mr Hosie will say:

“This UK Government is dishonest to legislate to slash public spending before coming clean on what these cuts mean for spending in UK departments. The only thing we know for certain is that Labour plan an £800m smash and grab raid on Scotland’s budget this year.

“With household spending and business investment both down, it is only public spending which is stimulating the economy out of recession.

“Slash and burn proposals like these risk tipping the economy further into recession and adding thousands more to the dole queue.”

Mr Hosie added:

“Scotland’s economy is showing signs of growth – but ongoing investment is vital to insuring strong recovery from recession.

“All G7 countries, with the exception of the UK, agree that withdrawing the current stimulus measures at this moment is precisely the wrong thing to do.

“Instead of inflicting swingeing cuts to the Scottish budget, the Chancellor should reconsider his decision to stop capital acceleration to Scotland – an irresponsible move which puts thousands of Scottish jobs at risk and weakens the chance of sustainable recovery.”