LOCAL ECONOMY PUT AT RISK BY SPENDING REVIEW

Banff & Buchan MP Dr Eilidh Whiteford has hit out at the Comprehensive Spending Review and warned that it could result in serious damage to the local economy of the North-east.

Speaking after the announcements Dr Whiteford said:

“A significant number of people in the North-east are directly employed by the public sector and many local businesses also rely on contracts from the public sector. These cuts, therefore, present a very serious threat to the local economy.

“Unfortunately the Chancellor has not given details of where job losses will occur and it is very difficult to ascertain, at this stage, the exact impact it will have locally but clearly it is likely to be substantial.

“What is worse is that the London Government argues that the private sector will create jobs to take up those losing their jobs in the public sector yet Price Waterhouse Coopers last week issued a report that demonstrated that the proposed cuts would lead to a similar loss of jobs in the private sector. Small and medium-sized local businesses will feel the impact of job losses elsewhere in the North-east economy.

“It is bitterly disappointing that the Chancellor has ignored the cross party case made by the governments of Scotland, Wales and Northern Ireland to protect growth in the economy and so set the course for sustainable public finances.

“Scotland is on the road to recovery, but these cuts risk cutting off that recovery and plunging us back into recession. The London Government is cutting too far and too deep rather than investing in the future.

“This highlights the need for Scotland to secure economic and financial powers to grow our economy and boost revenues.”