Tag Archive for recession

UK GOVERNMENT MUST STEP UP ACTION AS RECESSION CONFIRMED

January 23, 2009 Stewart Hosie MP No comments

Commenting on confirmation today (Friday), that the UK economy is now officially in recession, SNP Treasury Spokesperson, Stewart Hosie MP, said:

“The economic bad news has been relentless, and so confirmation that we are officially in recession is no surprise.

“It is essential that the UK Government step-up action to keep this recession as short and shallow as possible.

“One of the key levers to stimulate the Scottish economy, and which the UK Treasury could do right now, is to release the £1bn of Scotland’s resources being withheld by the Treasury. Labour should also rule out slashing the further £1bn in cuts planned by the Prime Minister.

“Last year’s VAT cut has clearly failed. Instead of rambling about ‘green roots of recovery’ UK Ministers should be looking to see how fiscal stimulus and capital spend can be reprofiled – a much more effective means of securing jobs and boosting the economy.”

‘A GRIM MEASURE OF THIS DEEPENING RECESSION’

January 22, 2009 Stewart Hosie MP No comments

HOSIE COMMENTS ON RISING UNEMPLOYMENT

Commenting on labour market statistics published today (Wednesday) which show that unemployment has reached almost two million across the UK, SNP Treasury Spokesperson, Stewart Hosie MP, said:

“The jump in the number of people claiming jobseeker’s allowance, and the record number of redundancies, as firms fold or cut jobs, is a grim measure of this deepening recession.

“The bad news just seems to keep coming, and these appalling labour market figures underline Gordon Brown’s failure to get a grip on the economic crisis.

“The banks seem hamstrung – told by the UK Government to strengthen their balance sheets whilst increasing lending. These were contradictory demands which saw the Government were forced into a humiliating u-turn on their own terms this week. Only now are we seeing real steps to get credit moving.

“The chaos over the stamp duty holiday put the housing market in deep freeze for a month and it has barely recovered.

“Gordon Brown assured the country that borrowing levels would remain at 2007 levels. Today we find mortgage lending has fallen by 30% to a six year low.

“Even their attempts to stimulate the economy were half baked – the VAT cut will be half as effective at preserving jobs and boosting the economy as a capital investment programme of the same value.

“Throughout this whole episode Labour have played politics citing the difficulties faced by Iceland to evidence the need for Scotland to remain part of the United Kingdom. This week, we learn unemployment in the UK is forecast to rise much more steeply than Iceland. If Iceland, according to Labour, is an example of bad government then heaven knows what that says about the performance of Gordon Brown.”

HOSIE ON INTEREST RATE CUT AND MONEY PRINTING

January 20, 2009 Stewart Hosie MP No comments

‘CHANCELLOR MUST CONSIDER SERIOUS IMPLICATIONS’

Commenting on the announcement today (Thursday) of a further 0.5% cut in interest rates by the Bank of England’s Monetary Policy Committee, SNP Treasury Spokesman Stewart Hosie MP said:

“As we head into a recession, any action to make it as short and shallow as possible is welcome, but the scale of this and recent cuts shows how critical the situation has become and confirms that the banks are not yet lending again to businesses and individuals.

“The UK Government must take further measures to ensure money starts flowing. In addition to this cut they must review the 12.5 % dividend they are expecting from the recapitalised banks.”

In response to reports the Chancellor is considering printing more money to help boost the economy, Mr Hosie added:

“I would urge the Chancellor to think carefully about the very serious implications this move. What Treasury officials will describe as quantitative easing will conjure up images of wheelbarrows full of worthless cash for everyone else – and risks future inflation and a further serious weakening of sterling.

“In addition to monetary policy, the economy needs a fiscal stimulus. Analysis produced by the Scottish Government suggests that a programme of capital investment of equal value would have safeguarded twice as many jobs as the recent VAT cut.

“If the UK Government was really committed to supporting the Scottish economy, they would scrap their planned £1 billion cut to Scotland’s budget in 2010 and 2011 which pose a major threat to jobs and services in Scotland.”

HOSIE ON INTEREST RATE CUTS

December 4, 2008 Stewart Hosie MP No comments

SNP EXPOSE £27.5BN INCREASE SINCE MARCH

Commenting on the announcement today (Thursday) of a further 1% cut in interest rates by the Bank of England’s Monetary Policy Committee, SNP Treasury Spokesman Stewart Hosie MP said:

“As we head into a recession, any action to keep it as short and shallow as possible is welcome.

“However, this cut comes one month after a 1.5% cut and just one day after the Prime Minister’s 11th hour mortgage plan announcement.

“In serious times, Scotland needs a Government who will offer a considered approach. While the Scottish Government has laid out a 6-point economic recovery plan, London Labour appear to lurch from one on-the-hoof policy to another.

“If the UK Government was really committed to supporting the Scottish economy, they would scrap their planned £1 billion cut to Scotland’s budget in 2010 and 2011 which pose a major threat to jobs and services in Scotland.”

STRONGER TOGETHER? OECD REPORT SUGGESTS NOT

November 25, 2008 Stewart Hosie MP No comments

HOSIE COMMENTS ON REPORTS THAT UK ECONOMY WILL SHRINK

Commenting on warnings by the Organisation for Economic Co-operation and Development (OECD) that the UK is heading towards a “severe” economic downturn in the UK in 2009, SNP Treasury Spokesperson Stewart Hosie MP said:

“The Chancellor’s Pre-Budget Report is not so much unfolding as unravelling.
“Yesterday, Alistair Darling said the UK economy would decline by up to 1.25% next year, but added incredibly that the UK was ‘better placed’ than other countries to cope with the downturn.

“Less than 24 hours later, and the OECD are warning that economic output in the UK will fall by 1.1% next year – more than any other major G7 country.

“Indeed, in the Chancellor’s own Pre-Budget Report contains further forecast by the International Monetary Fund (IMF) which foresees a 1.3% fall in output in 2009.

“So the Chancellor says we are well placed, while the OECD and the IMF both say the recession is going to be deepest and darkest in the UK.

“In contrast, yesterday’s Ernst and Young ITEM forecast said that Scottish GDP would only contract by 0.4% and Scottish growth is set to outstrip growth in the UK by 2010.

“The Chancellor’s assertion that the UK is better placed to weather the financial storm than other countries is simply wrong. The most recent IMF forecast for Sweden, Finland and Norway – three small, independent countries – shows growth.

“The Unionist parties claim that Scotland is better off as part of the United Kingdom. The evidence would suggest not.”

HOSIE RESPONDS TO PRE-BUDGET REPORT

November 25, 2008 Stewart Hosie MP No comments

Responding to the Pre-Budget Report today (Monday), SNP Westminster Treasury spokesperson, Stewart Hosie MP, restated demands on the UK Government to release a £1billion of resources to help reflate the Scottish economy.

Mr Hosie said:

“While welcoming aspects of the Chancellor’s programme, and the broad direction of travel in terms of action to accelerate public spending, cut VAT and signal an increase in the top rate of income tax, there is much more that the UK Government should have done.

”Westminster is still sitting on £1billion of Scottish resources which should be released and put to work to help reflate Scotland’s economy.

”The fact that oil revenues have virtually doubled from £7.8bn in 2007/08 to £13.2bn in 2008/09 – a record annual figure, and £3.3bn more than the forecasted £10bn in the previous Budget – shows that the Chancellor’s programme is being backed by Scottish oil.

”Indeed, the Treasury scooped £41bn from the North Sea over the last six years, and is forecast to rake in a further £55bn over the next six years – with next year’s oil revenue bigger even than last year’s.

“At a time when the UK Government’s own budget rules have effectively been set aside in an attempt to get to grips with the financial and banking crisis, it makes every sense for the unfair Westminster controls on Scotland’s budget to be relaxed – so that we can invest in a package to support the real economy.

”Whilst some of the steps set out by Alistair Darling are in the right direction, we needed to have specific and targeted action to help households and business – such as removing VAT on domestic heating this winter, and cutting VAT to 5% minimum for housing repairs.

“While accelerated capital expenditure is welcome, the reality is that there is virtually no new money in the PBR in terms of extra spending for Scotland. And I am very concerned that the PBR contains a cut in Scotland’s Budget 2010/11 over and above any reprofiling of spending.

”It is in all our interests for this recession to be as short and shallow as possible, and Scotland must have the responsibility to use its own resources to the fullest extent and to the maximum benefit for the Scottish economy.”

SNP CALL FOR ACTION AS UNEMPLOYMENT HITS HIGH

November 12, 2008 Stewart Hosie MP No comments

Commenting on news that unemployment in the UK in the three months to September jumped by 140,000 to 1.82 million – the highest in 11 years, and that the so-called claimant count – those claiming Jobseeker’s Allowance – has now increased for nine months in a row and is 154,800 higher than a year ago, the SNP have called on the UK Government to take urgent and widespread action.

SNP Westminster Treasury spokesperson, Stewart Hosie MP, said:

“The reality of recession is really biting, and with unemployment reaching its highest level since 1997 it is crucial that the UK Government take urgent action to counter redundancies, rising costs and repossessions.

”The Scottish Government is doing everything within its powers by delivering a six-point plan to help families and business. The UK Government must do the same.

”We need to reflate the economy by tackling rising household costs particularly soaring energy and fuel costs, and to help businesses, which are the lifeblood of the economy, grow us out of recession.

”Businesses must be able to keep more of the money they earn to absorb costs and to protect and preserve jobs, and there must also be parallel increases in public spending to stimulate demand in key sectors such as construction.

“And any new borrowing should not be spent solely on tax reductions. Additional public spending is also needed to stimulate growth. And that is why the UK Government should lift unfair Treasury controls and release the billion pounds of spending due to Scotland – including the Scottish Government’s own underspend and Scotland’s Fossil Fuel Levy.

“When you have exceptional circumstances, substantive actions are needed at every level to provide stimulus and boost economic demand. We must pull together and use our resources to the fullest extent and to the maximum benefit for the Scottish economy.”

SNP CALL FOR URGENT ACTION TO LIMIT IMPACT OF LOOMING UK RECESSION IN SCOTLAND

October 24, 2008 Stewart Hosie MP No comments

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.”

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