The SNP has renewed calls for a major fiscal stimulus package and the devolution of financial powers after an Office for National Statistics (ONS) analysis revealed the UK economy is rebounding slower than expected.
The ONS described the UK economy as "in the doldrums" after new analysis, released today, showed the economy is now 24.5% smaller than it was in February and grew by just 1.8% in May.
Kenneth Gibson MSP has called on the UK government to show more ambition and deliver the scale of response needed to protect jobs, with an £80 billion fiscal stimulus package, representing 4% of UK income. Last week’s package from the Chancellor amounted to barely a third of that. Devolution of financial powers to the Scottish Parliament is essential to enable a tailored response for Scotland's economy. Tory Government failure to act could lead to mass redundancies.
"Unless the UK Tory Government takes the bold action required, there is a very real threat of prolonged economic damage and mass redundancies, with thousands of jobs on the line and a threat to the survival of many businesses.
"The Chancellor must urgently deliver the funds needed to protect jobs. That means a recovery package of at least £80 billion in new investment and the devolution of financial powers necessary to enable Scotland to deliver a tailored response.
"The UK fiscal statement failed to deliver anything close to scale of response needed to meet this unprecedented crisis. The UK should mirror countries where much bigger investment is being mad. The Tories must raise their ambitions or millions of people will suffer unnecessarily. Scotland can make different choices for an investment-led recovery, which protects jobs but only with the necessary powers.”
UK economy rebounds more slowly than expected:
Job cuts misery continues as 10,000 workers face axe at Boots, John Lewis and Rolls-Royce:
Mass unemployment feared:
Scottish Government blueprint for economic recovery:
Coronavirus: Scottish government calls for new borrowing powers:
Towards a Robust, Resilient Wellbeing Economy for Scotland: Report of the Advisory Group on Economic Recovery: