OECD recession prediction shows failure of Tory economic plan

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The Organisation for Economic Co-operation and Development has said that the British economy shrank by 0.1% in the first three months of this year. The contraction in the economy in the first quarter of 2012 follows a slightly larger 0.3% contraction in the economy in the final three months of 2011.  After shrinking for two successive quarters, an economy is deemed to be officially in recession.   

Commenting on the OECD’s figures, the SNP Treasury spokesperson Stewart Hosie MP, a member of the Treasury Select Committee, said:

“George Osborne’s Budget failed to deliver the key measures needed to help economic recovery, and this OECD forecast for a UK recession is further evidence of why we need an urgent change in direction by the UK Government.

“The SNP have argued right from the start of the economic downturn that capital investment is the best way to keep the economy moving and keep people in work. Unfortunately, the UK Government is not listening – which once again shows why Scotland needs to secure real economic powers with independence.

“Last week’s budget showed that the UK Government remain wedded to the austerity cuts that they have introduced and now want them to last longer and cut deeper than originally planned.

“The UK Government has its priorities all wrong. While hard-working households and businesses feel the impact of these cuts, the Tories want to give tax breaks to the rich – and incredibly Labour didn’t even vote against it!

“The SNP have argued right from the start of the economic crisis that capital investment is the best way to keep the economy moving and keep people in work.

“Unfortunately, the UK Government is not listening – and that, once again, shows why Scotland needs to secure real economic powers.”