HOSIE CALLS FOR ACCESS TO FOSSIL FUEL LEVY AS UK FACES RECESSION

SNP Treasury Spokesperson, Stewart Hosie MP, has called for urgent action to ensure that the impact of the imminent recession on Scotland is limited.

Commenting as the Office for National Statistics (ONS) announced that the UK economy shrank for the first time in 16 years with -0.5% growth between July and September this year, Mr Hosie said:

“Today’s announcement by the ONS confirms what many have been saying for some time. The UK economy is heading for a recession and, with a simultaneous credit squeeze and decline in the housing market, the situation is grave indeed.

“The Pre-Budget Report must not be delayed. It is now all the more pressing that a suitable package of measures is implemented to ensure that this looming recession is as short and shallow as possible.

“While the Scottish Government is doing all it can within its areas of responsibility– accelerating investment in affordable housing and devising a six point plan to support Scottish business and hard-pressed households – action from the UK Government is necessary.

“The Treasury must devise a significant programme of reflation to boost the wider economy as, under current constitutional arrangements, they control the key economic levers that can make a real difference in Scotland.

“It must also reconsider its outrageous position on refusing access to Ofgem’s Fossil Fuel Levy. As a result of the Treasury’s ludicrous accounting arrangements, the Scottish Government is being denied access to £120m of Scotland’s money which is languishing in Treasury bank accounts – that money is needed now to help stimulate the Scottish economy.”