UK GROWTH FIGURES UNDERLINE FOLLY OF FAST CUTS

For Immediate Release – Tuesday 26th October 2010



Attention: NEWS DESKS




POLITICAL CORRESPONDENTS


SNP Treasury Spokesperson, Stewart Hosie MP, has said today’s (Tuesday’s) GDP statistics underline the folly of the UK Government’s deficit reduction plan. GDP for the last quarter for the UK as a whole showed growth of 0.8% while growth in Scotland was higher at 1.3% - which can be attributed in part to the SNP Scottish Government’s support for the construction sector which showed strong growth at 10.4%.




Commenting, Mr Hosie said:




“Scotland’s GDP growth of 1.3 per cent in the second quarter of this year was not only higher than the UK as a whole, but was also above the G7 average of 0.7 per cent, the OECD average of 0.9 per cent, and the EU average of 1.0 per cent.


“Scottish growth was driven by a substantial rise in the construction sector but this recovery is being put at risk by the UK Government’s damaging decision to slash the Scottish capital budget by a quarter next year and a third over the period of the spending review.


Commenting on reports that Labour strategists have admitted that the party’s economic policy “lacks substance”, Mr Hosie added:


“Labour’s hypocrisy over cuts is truly breathtaking when their own strategists say that their own plan was just as bad.




“The willingness of the London parties to take a wrecking ball to the Scottish recovery underlines precisely why the Scottish Parliament must be given economic responsibilities, including real borrowing powers, to protect Scottish jobs and recovery.”




ENDS