Friday, 22 February 2013

UK Triple-A Loss Result of Wrong Approach to Tackling Recession


"HAMMER BLOW TO CREDIBILITY OF 'NO' CAMPAIGN"

Reacting to the news tonight that Moody's have removed the AAA credit rating from the UK (with the other ratings agencies having the UK on "negative outlook"), the Scottish National Party pointed to the hypocrisy of the No campaign in the referendum, which asserted that this would only happen in an independent Scotland.

Last year, Chief Secretary to the Treasury Secretary Danny Alexander attempted to whip up fears over the credit rating of Scotland.

Almost two-thirds of the countries that now hold triple-A status have populations of less than ten million - including Finland, Sweden, Denmark, and Norway.

Scotland has stronger public finances than the rest of the UK, with the most recent GERS figures showing that Scotland contributes 9.6% of public revenues but receives 9.3% of public spending. The SNP Government has balanced Scotland’s budget in every single year since 2007 while the oil & gas sector boosted the UK’s balance of trade by £40 billion. On an internationally comparable basis, Scotland’s share of UK debt in 2010 would have been 64% of GDP, compared to the UK’s 76%, the EU’s 80% and the G7’s 114%.

Commenting, SNP Westminster Treasury spokesperson Stewart Hosie MP said:

“The UK government failed to learn the lessons of economic history, and has taken exactly the wrong approach to the recession.

“And now the ill-judged attacks that anti-independence politicians have made about Scotland have come back to haunt them - this is negative news for the UK economy, and also a hammer blow to the credibility of the No campaign.

"First, we heard from the UK Government how important it was to cut the deficit and pay off debt to avoid a downgrade. Now - with austerity in the UK projected to last at least six more years - they said that the AAA rating was unimportant.

“The No campaign can’t have it both ways - the scaremongering simply doesn’t stack up and has completely unravelled tonight.

“The record of our neighbours shows that small, well managed independent countries can have every expectation of enjoying the highest credit rating and more importantly favourable bond yields. Almost two-thirds of the countries that now hold triple-A status have populations of less than ten million - including Finland, Sweden, Denmark, and Norway.

“Scotland is in a stronger financial position than the rest of the UK, and that is a positive starting point from which to grow and develop the economy of an independent Scotland.”

One example of scaremongering by Danny Alexander on an independent Scotland’s credit rating can be seen here: http://www.dailyrecord.co.uk/news/uk-world-news/
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