Swinney's Scottish budget challenge to Chancellor

Published on Monday 13 April 2009 09:58

CHANCELLOR Alistair Darling was today urged to use this month's budget to take "bold" action to help boost Scotland's economy.

Finance Secretary John Swinney has written to the Chancellor ahead of his crucial budget on April 22.

With unemployment rising and the economy struggling, he called on Mr Darling to take "bold short term measures" at this "critical time".

Mr Swinney claimed: "The UK government has had plenty of chances to act and provide real help for the Scottish economy. It is under their watch that this crisis grew, but the actions of the Chancellor and the Prime Minister so far have not been sufficiently effective.

"Instead of the really significant and targeted fiscal stimulus our economy has been crying out for, we have seen what has proven to be an ineffective cut in VAT.

"Now is the time to put that right. The Chancellor must introduce a bold, targeted fiscal stimulus to generate jobs and drive growth."

The Finance Secretary said that Maryland – a US state with a similar population to Scotland – is receiving stimulus support worth 2.6 billion.

And he stressed: "The Chancellor's Budget later this month must deliver for Scotland."

In his letter the Finance Secretary urged Mr Darling "to take bold short term measures at the budget to enable us to provide a boost to the Scottish economy and to support employment and output at this critical time".