George Osborne has suffered another embarrassing blow this week as the Bank of England’s next governor- who has been appointed by the Chancellor- has downplayed hopes of a boost to growth and warned that he would be moving to a “crisis” economy when he takes his position in the UK later this year.
Mark Carney, the successor to Mervyn King said there were three classes of countries in the global economy; crisis economies, those emerging from crisis, and those growing strongly.
The comments follow calls from the International Monetary Fund earlier this week for George Osborne to reconsider the UK government’s austerity agenda. The IMF has slashed its forecasts for UK growth –more than any other major economy.
Commenting, SNP Treasury spokesperson Stewart Hosie MP said:
“Mark Carney’s comments are a hammer blow to the Chancellor.
“We know with every day that passes that George Osborne and Danny Alexander’s plans are completely backfiring. The UK’s stagnant performance also shows a fall in industrial output of 2.1% in the last quarter of last year.
“The Chancellor’s remaining credibility went with the loss of triple A credit rating, a timid and unimaginative budget and a failed economic policy that has produced nothing but austerity and misery for many.
“The Scottish Government is using the levers available to it to produce better outcomes – with lower unemployment including youth unemployment than the rest of the UK – and a focus on capital investment. The economic failure of the Westminster system shows why the economic levers should be in the hands of Scotland with independence – not George Osborne and Westminster.”