CSR RISKS RECOVERY AND RETURN TO RECESSION

For immediate use: Wednesday 20 October 2010

Attn:       NEWSDESKS

            ECONOMIC / POLITICAL CORRESPONDENTS

Responding to the Comprehensive Spending Review today (Wednesday) SNP

Westminster Treasury spokesperson Stewart Hosie MP said the Chancellor

had pulled the rug from under recovery, and now risked a double-dip

recession.

Mr Hosie – a Member of the Treasury Select Committee – said:

“George Osborne has pulled the rug from under recovery with these

reckless cuts, and risks plunging the country back into recession.

“It is bitterly disappointing that the Chancellor has ignored the

cross-party case made by the governments of Scotland, Wales and

Northern Ireland to protect growth in the economy and so set the

course for sustainable public finances. The Chancellor would have us

believe that there is no alternative to his hard and fast cuts, and

that is just not the case.

“The strong GDP figures published by the Scottish Government today

show that Scotland is on the road to recovery, but underline what is

at risk if Scotland's recovery choked off by irresponsible cuts from

Westminster.

“Underneath all the Downing Street spin, these are Tory and LibDem

cuts that will hit the poorest hardest. Within hours of the emergency

Budget in June research by the Institute for Fiscal Studies (IFS)

revealed that the Tory/Liberal coalition is pursuing a regressive, not

progressive, agenda which will widen the gap between rich and poor.

“We have the same old Tories, now helped by the Liberal Democrats,

cutting too far and too fast and leaving the poorest households to

bear the brunt of tax rises, benefit cuts and the loss of public

services and jobs.

“This program of cuts highlight the need for Scotland to secure

economic and financial powers to grow the economy and boost revenues.

The challenge is to protect services, jobs and the economy in

Scotland, and it is only the SNP which has an alternative to the dire

and depressing agenda of Labour cuts or Tory/LibDem cuts. Instead of

accelerating cuts for Scotland we need more powers - and quickly.”

ENDS