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Both Scottish and UK Government papers show alternative to planned cuts.

Responding to the Treasury paper, Deputy First Minister John Swinney said:

“The Scottish Government’s proposals would see public spending increase by 0.5%, generating £180bn of investment in public services as an alternative to the austerity plans set out by the UK Government. That is money which can and will support our NHS, our education system and boost the economy.

“The Scottish Government has shown that it is not necessary for austerity to continue as planned by the UK Government. There is substantial room for additional spending while still keeping public finances on a sustainable path. These Treasury figures also show there is an alternative to austerity that is not only possible but that works.”

“Even though it uses a different methodology, the Treasury analysis confirms that under our proposals, the deficit would fall every year and debt will fall steadily after 2017-18, allowing an additional £180bn of expenditure along with sustainable public finances.

“In short, the treasury have helpfully confirmed that an alternative to austerity is both viable but essential in order to protect our public services from further UK Government cuts.”

Notes To Editors

The Scottish Government analysis of debt uses a simple and transparent methodology to allocate new debt to the overall stock of debt in the year following the borrowing. This provides a clear figure for the stock of debt at the start of each financial year. Further details can be found in the paper published by OCEA yesterday:http://www.gov.scot/Topics/Economy/Publications/Spending-Policy-Costing