IMF expects less of the UK

Labour's contradictory position of criticising the Tories for their economic policy and yet siding with the coalition to impose Westminster rule over Scotland is damaging Scotland's recovery, an SNP MP has said today.

The IMF previously predicted the UK would grow by 0.8% this year and by 2% in 2012, but the new estimates growth of just 0.2% this year and 1.4% in 2013.

Labour have called for a "Plan B" and "urgent action" to boost the economy, yet their support for the Tory-led No campaign in Scotland has been unwavering.

Stewart Hosie MP, the SNP's Treasury spokesperson, said he was "sddened" by Labour "cosying up to Tory austerity".

He said:

“I am saddened that Labour are making themselves look a laughing-stock by cosying up to Tory austerity by trying to dictate to Scotland that there is no other way than being run by Westminster which has delivered a double-dip recession and has now seen its growth forecast shredded by the IMF.

"The UK Government must listen to the IMF and deliver the Plan B that the Scottish Government has been arguing for to boost growth and employment.

"It seems that everyone except the Chancellor recognises the importance of infrastructure spend as a means to promote economic growth. Even Labour know this but they don't want to let Scotland do this for themselves or even support the Scottish Government's shovel ready requests.

"The IMF’s assessment is consistent with the Scottish Government’s calls for  300 million capital investment in 30 shovel ready projects to build economic recovery and create jobs across Scotland. Every  100m of capital investment is estimated to support 1400 jobs, and would provide a much needed boost to the UKs stagnating economy.

"It’s time for the UK Government to recognise that austerity measures alone aren’t working, signal a new approach by increasing infrastructure spending, and support the Scottish Government's 'shovel-ready' capital projects across Scotland.

"The SNP have been putting a positive case for independence and for economic renewal. But the anti-independence soundbite that we are somehow better together now rings rather thin when the IMF is downgrading the UK again."