‘UK austerity hurts Scottish economy’

On Monday 11 June, the Scottish government’s finance minister, John Swinney, accused British Chancellor George Osborne of using the eurozone crisis as an excuse for Britain’s latest drop into a double-dip recession.

George Osborne had stressed, “Our recovery, already facing powerful headwinds from high oil prices and the debt burden left behind by the boom years – is being killed off by the crisis on our doorstep.”

John Swinney then returned with an opposing reaction to the British Chancellor’s statement. “Rather than seeking cover in the euro crisis the Chancellor should acknowledge that much of the responsibility for the lack of growth in the UK economy since the onset of recession back in 2008 lies at his own door,” he said.

Official figures released by Britain’s Office for National Statistics show the 0.3 percent plunge in Britain’s Gross Domestic Product (GDP) during the last quarter of 2011 accompanied by the 0.3 percent fall in the country’s economic growth in the first three months of 2012 have driven the British economy into a double-dip recession.

Scotland plans to hold a referendum aimed to end a 300-year union with England. The Scottish National Party is planning for a referendum in the autumn of 2014, however Britain’s Conservative led coalition government is demanding for an earlier vote, due to a warning of uncertainty it could bring to the economy.

BGH/ISH/HE

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