Autumn Statement: ‘It’s not working’, FM says of Osborne strategy

Published on 07/12/2012 00:54

The extra £331 million available to the Scottish Government through the Chancellor’s Autumn Statement will only undo previous cuts, according to the First Minister.

The Scottish Government will receive the boost to its capital budget, to which the cut is now 25.9 per cent over the spending review period to 2014-15, rather than 33 per cent, in real terms, according to the Scottish Government.

Speaking at First Minister’s Questions, Alex Salmond said: “It should be remembered across this chamber that [the £331m] will just undo some of the position of the previous cuts. The capital budget net will still be going down by 26 per cent.”

Mr Salmond said the Chancellor’s “change of heart” on capital spending could be “in itself an admission that the previous strategy was not working, the economy was flatlining”.

Scottish Greens co-leader Patrick Harvie said the poorest are being hit while big business benefits from “another massive tax cut”.

Mr Harvie, pictured, asked: “Isn’t it time for the Scottish Government to give up on the dream of even deeper corporate tax cuts and accept that corporation tax is a necessary tool
for raising the investment that we need for a fairer society and a healthier economy?”