Time Has Come For 'Plan MacB' As IMF Slash UK Forecast

The SNP has urged the UK Government to bring forward an economic ‘Plan MacB’ as the International Monetary Fund today (Tuesday) slashed its growth forecasts for the UK.

The SNP Scottish Government’s proposals – as outlined by First Minister Alex Salmond, including in response to last week’s labour market statistics –focuses on increased capital expenditure, improved access to finance for medium and small sized businesses, and the introduction of measures to boost consumer confidence and economic security.

Among all the nations and regions of the UK, Scotland is the only place where unemployment fell in the latest quarter, May-July 2011.

During this three-month period, unemployment in Scotland fell by 3,000 to 7.5 per cent, compared to a UK-wide increase of 80,000 to 7.9 per cent. Over the year, Scottish unemployment has fallen by 33,000, while UK levels increased by 44,000.

Scottish employment increased by 23,000 to 71.6 per cent in the latest quarter. Again, Scotland is outperforming the UK, where employment fell by 69,000 and the employment rate decreased 70.5 per cent during May-July 2011.

Over the year, Scottish employment rose by 36,000 – encompassing the entire 24,000 figure for the aggregate employment increase in the UK as a whole.

Commenting, SNP Westminster Treasury spokesperson Stewart Hosie MP said:

“The time has come for the Treasury to take action and follow the Scottish Government’s lead by implementing an economic ‘Plan MacB’ to build recovery and growth.

“The SNP Government are delivering a ‘Plan MacB’, which is cutting unemployment in Scotland while it rises in every other part of the UK, and it is vital that the Tory/Lib Dem coalition at Westminster follows the Scottish lead – otherwise there is a real risk that they will derail our recovery.

“Measures are needed to boost consumer confidence, especially critical to recovery at a time of inflation, fuel and food price pressures. We need to see a new focus on additional infrastructure investment, such as new transport and housing projects, to create new jobs and new capital assets for the long-term. And we also need the UK government to take action to ensure the banks improve access to finance to help good businesses grow.

“Our no compulsory redundancy policy for staff under Scottish Government responsibility is helping to boost consumer confidence, and our commitment to the social wage – including the council tax freeze, no tuition fees, free prescriptions, and free concessionary travel – is giving Scots households maximum protection at a time when other bills and inflation are on a sharply rising curve.

“We now need the UK government to follow this lead and introduce an action ‘Plan MacB’ to drive recovery.”