Scotland’s First Minister John Swinney has described the most recent UK-wide GDP (gross domestic product) statistics as “deeply alarming.”
Data released by the Office for National Statistics (ONS) on Monday indicated that there was no growth in the UK economy from July to September of this year, contradicting an earlier forecast of a 0.1% increase.
Additionally, adjustments were made to the growth figures for the second quarter, revising them down from 0.5% to 0.4%.
In conversation with the PA news agency on Monday, Mr. Swinney voiced his worries regarding what he believed were “errors” made by the UK Government that led to the stagnant growth rates.
“The data that has come out today about the performance of the UK economy in the last quarter is deeply alarming,” he said. “There’s been an absence of growth and that’s going to be added to by the decisions taken in the UK Budget, when the Chancellor decided to increase employers’ national insurance contributions, which is, bluntly, a tax on jobs.
“So, I’m really worried about what that decision will mean for the future prospects of the economy.”
Swinney mentioned that although the Scottish Government’s latest budget, unveiled earlier this month by Finance Secretary Shona Robison, was intended to enhance Scotland’s attractiveness for investment, he continued to have significant concerns about the economic strategy put forth by the UK Government. He stated:
“Fundamentally, I am worried about the economic outlook that the Labour Government has taken forward because of some mistakes that were made in the budget about increasing employer national insurance contributions and the implications of that will be very significant for Scotland.”
Responding to the numbers, Chancellor Rachel Reeves said in a statement that her Government faces a “huge” challenge following years of “neglect” by the Tories. She claimed: “The budget and our plan for change will deliver sustainable long-term growth, putting more money in people’s pockets through increased investment and relentless reform.”
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