CHANGE COURSE NOW OR LOSE A DECADE OF GROWTH WARN SNP
SNP Westminster Treasury Spokesperson Stewart Hosie MP has warned of a ‘lost decade for UK growth’ ahead of the Chancellor’s budget announcement tomorrow (Wednesday).
The UK economy is effectively flat-lining , growing by just 0.1% last year compared to the bold 2.8% forecast made by George Osborne when this Government first came to power.
And this Tory led Government are borrowing more. The Independent Office of Budget Responsibility now forecast that the UK will need to borrow £134 billion more over the next four years than originally planned.
Worst of all, the Chancellor now looks set to push back even further the time when the UK’s debt will even begin to fall as a share of GDP.
Stewart Hosie MP said:
“George Osborne has fallen incredibly short of his June 2010 forecast by putting back by three years the point when UK debt will fall .
“The scale of this failure – a touchstone of his plans – plus the pain felt by ordinary families because he has chosen cuts over growth make it clear that austerity isn’t working.
“The Chancellor’s failure to ‘go for growth’ risks a lost decade of economic stagnation if he doesn’t waken up and invest for the future now.
“The Government should listen to all those voices from all sides of industry who are urging the Chancellor for a direct boost to the economy from capital expenditure and increased investment.
“And , of course, the Chancellor must get the banks lending. Businesses are still finding access to funding very difficult. We cannot have a repeat of the shambles of the Funding for Lending Scheme, which saw £9.5 billion lend cheaply to the banks only for them to cut their lending to SMEs by £2.4 billion.
“Plan A has failed. It’s time to go for growth.”