Osborne’s austerity ‘harming economy’

Published on Sunday 29 January 2012 00:00

THE UK Government’s “austerity approach” is harming rather than helping the economy, according to the Finance Secretary.

John Swinney is due to give a keynote speech on the state of Scotland’s economy to the David Hume Institute in Edinburgh on Thursday.

Swinney will say Chancellor George Osborne’s strategy has placed “too much emphasis on austerity, and not enough on promoting growth”. He will argue that all the blame for last week’s GDP figures – which revealed the UK economy shrank more than expected at the end of last year – cannot be attributed to the Eurozone crisis.

“I have argued on a number of occasions that while I recognise the clear need to address the legacy of debt inherited from the previous UK Government, this can only be achieved if there is sufficient growth in the economy. This is not what we are seeing,” he is due to say.

“Continuing uncertainty in the Eurozone is playing its part in the disappointing growth figures.

“However, not all the blame can be laid at the door of the Eurozone. Much of the responsibility for the lack of economic growth must therefore be laid at the door of 11 Downing Street.”

Osborne has argued that his government’s efforts to cut expenditure offer the best solution to rebalancing the economy.

However, Swinney will argue that severe austerity measures could threaten growth and end up hampering recovery.

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Jolly

Sunday, January 29, 2012 at 11:37 AM

How much responsibility for the lack of economic growth can be laid at Holyrood? The TIE fiasco certainly caused two long years of sustained damage to shopkeepers in Edinburgh City Centre, hurting small businesses. Holyrood stood back and allowed the SNP councillors to wreck business life in Edinburgh.

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Danielrober2

Sunday, January 29, 2012 at 07:23 AM

I used to be a big fan of Swinney, not that he will be upset to see people such as myself remove support. His capability at economic husbandry means little when over £970 million of steel contracts is just given away, under the guise of been a good deal for Scotland. I have supported more borrowing powers consistently for Scotland, but what good will it do it the SNP just go shopping abroad constantly? ....................... I feel very sorry for any Scot involved in the heavy steel business as the SNP have just slammed the door shut on them for another decade.

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Chubby

Sunday, January 29, 2012 at 01:47 AM

Whatever the UK Government did, it would be wrong in the SNP's eyes. Could the Scottish government concentrate on the number of people working in the state sector in Scotland - i.e. over 30% of the workforce in Edinburgh according to the Scotsman's own figures. Stop criticising the UK Government and start putting the Scottish economy on track.

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