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Sturgeon to face calls to abandon second independence vote Sturgeon to face calls to abandon second independence vote
(35 minutes later)
Scotland's first minister, Nicola Sturgeon, is likely to face calls at Holyrood later to abandon her plans for a second independence referendum.Scotland's first minister, Nicola Sturgeon, is likely to face calls at Holyrood later to abandon her plans for a second independence referendum.
MSPs are expected to use a debate on the economy to argue that such a vote would cause damaging uncertainty for businesses.MSPs are expected to use a debate on the economy to argue that such a vote would cause damaging uncertainty for businesses.
Scottish ministers will argue that the main threat to the economy is Brexit.Scottish ministers will argue that the main threat to the economy is Brexit.
Ms Sturgeon has said she will "reflect carefully" on her plans after the SNP lost 21 seats in the general election.Ms Sturgeon has said she will "reflect carefully" on her plans after the SNP lost 21 seats in the general election.
She has conceded that proposals for a second vote on leaving the UK were a factor in the result.She has conceded that proposals for a second vote on leaving the UK were a factor in the result.
Scottish Conservative leader Ruth Davidson, who saw the number of Scottish Tory MPs rise from one to 13, has claimed: "Indyref2 is dead."Scottish Conservative leader Ruth Davidson, who saw the number of Scottish Tory MPs rise from one to 13, has claimed: "Indyref2 is dead."
In what will be the first formal chance for MSPs to debate the general election result, the Tories, Labour and the Liberal Democrats will challenge the SNP to shelve plans for another referendum.In what will be the first formal chance for MSPs to debate the general election result, the Tories, Labour and the Liberal Democrats will challenge the SNP to shelve plans for another referendum.
The Holyrood debate on "opportunities for growth" follows publication of the State of the Economy report by the Scottish government's chief economist.The Holyrood debate on "opportunities for growth" follows publication of the State of the Economy report by the Scottish government's chief economist.
The report confirmed growth overall in Scotland during 2016 of 0.4%, which was "below trend and expectation".The report confirmed growth overall in Scotland during 2016 of 0.4%, which was "below trend and expectation".
The oil and gas sector downturn continued to affect the economy last year, though there are emerging signs of confidence returning to the industry, the report found.The oil and gas sector downturn continued to affect the economy last year, though there are emerging signs of confidence returning to the industry, the report found.
Meanwhile, Scotland's labour market has "remained resilient", with unemployment below the UK figure and falling over the past year.Meanwhile, Scotland's labour market has "remained resilient", with unemployment below the UK figure and falling over the past year.
The report states: "Brexit continues to present a significant risk to business and consumer sentiment in Scotland with investment sensitive to changing market signals.The report states: "Brexit continues to present a significant risk to business and consumer sentiment in Scotland with investment sensitive to changing market signals.
"It also presents the greatest source of uncertainty for the outlook particularly beyond 2018. The range of independent forecasts for 2017 suggest growth of between 0.9% and 1.3% for Scotland.""It also presents the greatest source of uncertainty for the outlook particularly beyond 2018. The range of independent forecasts for 2017 suggest growth of between 0.9% and 1.3% for Scotland."
'Brexit uncertainty''Brexit uncertainty'
Scotland's Economy Secretary Keith Brown said there was no doubt that the dip in oil and gas prices in recent years has had "a continuing effect on the Scottish economy".Scotland's Economy Secretary Keith Brown said there was no doubt that the dip in oil and gas prices in recent years has had "a continuing effect on the Scottish economy".
But the minister said uncertainty around Brexit was "the main concern" for business leaders.
He told the BBC's Good Morning Scotland programme: "The very rapid depreciation in the price of oil and gas has had a major effect.He told the BBC's Good Morning Scotland programme: "The very rapid depreciation in the price of oil and gas has had a major effect.
"But what we are now seeing, not least from the Aberdeen Chambers of Commerce yesterday, are signs of returning confidence and development activity in the North Sea."But what we are now seeing, not least from the Aberdeen Chambers of Commerce yesterday, are signs of returning confidence and development activity in the North Sea.
"We have in Scotland (compared with the rest of the UK) lower unemployment, which is very important."We have in Scotland (compared with the rest of the UK) lower unemployment, which is very important.
"And we made that a central part to our reaction to the recession...and to make sure that we safeguard jobs."And we made that a central part to our reaction to the recession...and to make sure that we safeguard jobs.
"For some time that was facilitated by the fact that we also had agreements in terms of wage growth."For some time that was facilitated by the fact that we also had agreements in terms of wage growth.
"What we are now seeing with Brexit is the push up in inflation, the impact that is having on people's lives in terms of wages."What we are now seeing with Brexit is the push up in inflation, the impact that is having on people's lives in terms of wages.
"So that's the challenge we have now - but we have kept many people in employment throughout the recession and subsequent Brexit uncertainty.""So that's the challenge we have now - but we have kept many people in employment throughout the recession and subsequent Brexit uncertainty."