ECONOMISTS ROUND ON PLANS TO CUT SPENDING

ECONOMISTS ROUND ON PLANS TO CUT SPENDING

PHONEY WAR BETWEEN LONDON PARTIES OFFERS SCOTLAND NOTHING

A group of leading economists have today (Friday) attacked Tory plans to
cut public spending after the General Election. In a letter to the
Financial Times, a group of fifty economists argued that such a move could
jepoardise economic recovery.

The SNP have consistently argued against the removal of fiscal stimulus on
the basis that it could lead to a double dip recession.

Despite claims they would not cut public spending until after 2011, the UK
Government plan to slash Scotland's budget by £800m next year and have
made no provision for fiscal stimulus next year.

Commenting, SNP Treasury Spokesman Stewart Hosie MP said:

"This letter confirms that the phoney war between the London parties has
nothing to offer Scotland.

"The Tories plan a triple whammy of cuts for Scotland while the UK Labour
Government have already slashed Scotland's budget by £800m this year and -
unique amongst the G7 - have no plans to continue fiscal stimulus into
next year. Both are risking Scotland's economic recovery as they race to
the front door of Number 10.

"Recovery is fragile at UK and Scottish levels, and now is not
the time for the Westminster Government to turn off the tap of stimulus
measures.

"Only SNP MPs will fight for their local communities and champion the
Scottish economy and Scottish jobs at Westminster.

"The more SNP MPs returned at the General Election, the louder Scotland's
voice will be in speaking up against further cuts to Scotland's budget and
threats to the Scottish recovery."