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The Scottish Government yesterday published its response to the Council of Economic Advisers' (CEA) First Annual Report.

First Minister Alex Salmond said that one of the recommendations, borrowing powers for the Scottish Parliament alongside the Government's six point economic recovery plan, would help Scotland emerge from the economic downturn stronger and more competitive.

The FM said:

"The advice and expertise provided by the Council of Economic Advisers is hugely valuable to Scotland, particularly in the current economic climate. Our overarching purpose as a Government is to increase sustainable economic growth.

"Prior to the current downturn, we showed our determination to act by putting measures in place such as the Small Business Bonus Scheme, the Council Tax freeze and reforms to the planning system, which are now bringing much needed help to households, businesses and high streets.

"And in response to the economic downturn, we have taken decisive and swift action with our six point economic recovery programme - including the reshaping our capital investment to bring forward money for affordable housing, accelerating European funding on skills and employment, intensifying our activity and support for Homecoming, boosting our programmes to tackle fuel poverty, and increasing advice and services for businesses and individuals.

"Parliament's backing last night for the general principles of the Budget Bill is a positive step towards delivering the vital spending plans which will support Scottish economic recovery - including accelerated spending of £230 million which will support 4,700 jobs across Scotland.

"And with additional powers, the Scottish Government could do much more, which is why I warmly welcome the CEA recommendation on the case for additional financial responsibilities for the Scottish Parliament, specifically borrowing powers.

"The issue of the Forth Replacement Crossing, for example, clearly illustrates the need for the Scottish Parliament to have borrowing powers, so that we have the ability to phase the funding of major capital projects sensibly and efficiently. And the economic downturn also demonstrates the case for Holyrood to have borrowing powers, which would mean that the Scottish Government could take the right decisions to reflate the economy according to our own distinct circumstances.

"Clearly, Westminster didn't do its homework in the Pre-Budget Report and got it wrong with the temporary VAT cut - since applying the same resources to infrastructure investment would have delivered more than double the impact in terms of jobs and output.

"The CEA's report will build on the action we are already taking to boost the Scottish economy, and help it emerge from this downturn stronger and fitter.

"I thank them for their work and continued commitment to Scotland, and believe that together we can drive forward a recovery programme for the benefit of everyone in our country."

The CEA, chaired by Sir George Mathewson, met for the first time in September 2007 and published their first Annual Report on December 5, 2008

Related Information

http://www.scotland.gov.uk/Topics/Economy/Council-Economic-Advisers

http://www.scotland.gov.uk/Publications/2008/12/04092147/0

http://www.scotland.gov.uk/Publications/2009/01/15111700/0

http://www.scotland.gov.uk/Topics/Economy/economic-situation