UK GOVERNMENT MUST FOCUS ON GROWTH

UK GOVERNMENT MUST FOCUS ON GROWTH

RECOVERY WILL NOT BE ACHIEVED THROUGH CUTS

UK GOVERNMENT MUST FOCUS ON GROWTH

BOOSTING SCOTLAND’S RENEWABLE SECTOR MUST BE PRIORITY

As the Office for Budget Responsibility downgraded UK economic growth projections, SNP Treasury Spokesman, Stewart Hosie MP warned against making rash cuts to spending and urged the coalition UK Government to concentrate on growing the economy instead.

The independent fiscal watchdog has forecast that growth will be 2.6% - down from the 3% prediction issued by the outgoing Labour Chancellor Alistair Darling in his last Budget in March 2010.

Commenting, Mr Hosie said:

“This prediction underlines both the deplorable mismanagement of UK finances by the Labour Government and the scale of the challenge facing the coalition Government in dealing with the consequences.

“George Osborne needs to look at this forecast and take action immediately to repair the public finances.

“This cannot be done simply by cutting expenditure – indeed indiscriminate and poorly timed cuts are more likely to endanger recovery than secure it.  

“The Chancellor must focus on a range of measures to create jobs, increase the rate of growth and generate revenue.

“Boosting Scotland’s renewables sector represents a massive opportunity to return to growth. By releasing the fossil fuel levy, the UK Government could help to kick start the green energy revolution – generating revenue and creating jobs in Scotland.”