Swinney condemns continued cuts

19 Mar 2015 12:12 PM

Chancellor’s ‘U-turn’ on oil and gas ‘long overdue’

Deputy First Minister John Swinney has yesterday (Wednesday) condemned the Chancellor’s continued pursuit of austerity saying that we face the same cuts today as we did yesterday, despite the Chancellor’s admission that there is headroom for investment in public services.

Mr Swinney also confirmed that, based upon figures published yesterday by the Office of Budget Responsibility, Scotland will see another £12 billion of cumulative cuts in real terms over the period to 2019, continuing to impact on our public services, our ability to invest in infrastructure and support for the most vulnerable in our society.

The Deputy First Minister has, however, cautiously welcomed the long overdue “U-turn” on the future of the North Sea, with the Chancellor finally acting on Scottish Government and industry calls for support for the sector. He highlighted that this “U-turn” was an admission by the Chancellor that his policy for the North Sea has been wrong and the poor stewardship by the UK Government has had a detrimental impact on our oil and gas sector and the many people who work in the industry

The Deputy First Minister said yesterday:

“The Chancellor had every opportunity to end the damaging cuts from the UK Government and has instead turned his back on investment in public services.

“We face the same £30 billion of unfair and unnecessary cuts today as we did yesterday. That is despite the clear admission from the Chancellor that there is headroom to invest to protect our public services.

“If we are to believe the Chancellor that the economy is making such a successful recovery, then there is no justification for the destructive cuts that impact on the most vulnerable in society. That tells you everything you need to know about the values and priorities of this Chancellor.”

Commenting on the ‘U-turn’ on the North Sea fiscal regime, Mr Swinney said yesterday:

“Measures to safeguard the North Sea are a step in the right direction for our oil and gas sector. The Scottish Government has been calling for such measures, along with the industry, for some time. Today’s measures are a glaring admission by the Chancellor that his policy for the North Sea has been wrong and the poor stewardship by the UK Government has had a detrimental impact on our oil and gas sector and the many people who work in the industry. It has taken the Chancellor four years to admit the tax rise he implemented in 2011 was a mistake. A heavy price has been paid for this mismanagement.

“Today I cautiously welcome the U-turn by the UK Government to take action on the future of the North Sea. We will study the proposals in detail. It is now essential that work is focussed on boosting investment and growth in the North Sea sector.”