By David Scott
30 September 2009
Scotland’s Finance Minister has told Chancellor Alistair Darling that more capital spending must be brought forward if the country is to survive the continuing recession.
In a letter to the chancellor, John Swinney underlined the need for the UK government’s Pre-Budget Report, due in November, to support a sustainable recovery. This was especially important since recent figures for gross domestic product had confirmed that the recession was not over.
He pointed out that almost £350m of capital spending had already been brought forward. This was supporting more than 5,000 jobs and offering a lifeline to the Scottish construction sector.
‘Our ability to continue supporting jobs in Scotland will be dependent upon the decisions you make preparing the Pre-Budget Report,’ Swinney wrote.
He added: ‘I urge you to ensure we can maintain this support. Despite the return to growth in some areas of the global economy, and some positive indications at home, the recent GDP figures demonstrate that it is essential that we do all that we can to assist businesses by focusing on measures to support recovery.
‘Specifically, the PBR must provide us with the opportunity to undertake further capital acceleration into 2010/11 to ensure that the progress we are currently making… is not lost.’
Swinney’s call came as business leaders claimed that the Scottish Government’s budget plans were inadequate to lift the country out of recession.
In a submission on the draft budget, CBI Scotland said the tight financial climate and the spending limits ahead should be viewed as an opportunity to do things differently.
CBI Scotland director Iain McMillan said: ‘The devolved spending plans are inadequate given the… fiscal stringency which will be required over the next few years.’
30 September 2009
Scotland’s Finance Minister has told Chancellor Alistair Darling that more capital spending must be brought forward if the country is to survive the continuing recession.
In a letter to the chancellor, John Swinney underlined the need for the UK government’s Pre-Budget Report, due in November, to support a sustainable recovery. This was especially important since recent figures for gross domestic product had confirmed that the recession was not over.
He pointed out that almost £350m of capital spending had already been brought forward. This was supporting more than 5,000 jobs and offering a lifeline to the Scottish construction sector.
‘Our ability to continue supporting jobs in Scotland will be dependent upon the decisions you make preparing the Pre-Budget Report,’ Swinney wrote.
He added: ‘I urge you to ensure we can maintain this support. Despite the return to growth in some areas of the global economy, and some positive indications at home, the recent GDP figures demonstrate that it is essential that we do all that we can to assist businesses by focusing on measures to support recovery.
‘Specifically, the PBR must provide us with the opportunity to undertake further capital acceleration into 2010/11 to ensure that the progress we are currently making… is not lost.’
Swinney’s call came as business leaders claimed that the Scottish Government’s budget plans were inadequate to lift the country out of recession.
In a submission on the draft budget, CBI Scotland said the tight financial climate and the spending limits ahead should be viewed as an opportunity to do things differently.
CBI Scotland director Iain McMillan said: ‘The devolved spending plans are inadequate given the… fiscal stringency which will be required over the next few years.’
