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Scottish effort to tackle economy | |
(about 4 hours later) | |
The first minister and Scottish secretary have agreed to put aside party differences to work on Scottish solutions to the economic downturn. | |
It follows an economic summit attended by Alex Salmond and Jim Murphy to discuss ways of avoiding a recession. | |
Unions and employers have called on government spending plans to be brought forward to fill gaps in order books. | |
The meeting marked the first time Mr Murphy had met the first minister since being appointed as Scottish secretary. | |
It was held at St Andrews House in Edinburgh and also involved representatives from CBI Scotland and the STUC. | |
'Stimulate recovery' | |
A joint statement issued after the meeting said: "This was a very useful and constructive meeting, which included an update on the actions being taken by the UK Government to address difficult economic times, the delivery of the Scottish Government's six-point plan to help business and families, and discussion on areas of flexibility which could increase aggregate demand in Scotland. | |
"It indicates the willingness of both tiers of government to work together and have good channels of communication, and develop initiatives with business, unions, social and other partners including local government, in order to bring forward spending and other measures to stimulate economic activity." | |
It was agreed that regular contact would be maintained to assess progress on economic issues. | |
We should have learned the lesson that doing all we can at this moment in time to help avoid a deep and prolonged recession will pay back in the future Stephen BoydSTUC Speaking after the meeting, Mr Murphy said: "I thought it was a very constructive, sensible meeting and carried out in excellent spirit. | |
"We put aside what is often the petty disagreements in Scottish politics and vowed to work together and that's very positive." | |
Mr Salmond said: "On some areas that we talked about there's an indication of flexibility, for example on police and fire pensions. | |
"Other things I think we'll just have to take forward to the Treasurey. | |
"Equally it was pointed out to the Scottish Government there might be areas in terms of social funding spending, reacting to the rising joblessness figures in Scotland, where we could take a lesson from what's happening in Wales and south of the border and we'll certainly do that." | |
Stephen Boyd, from the STUC, earlier said that any action needed to be put in place quickly as he was expecting imminent official confirmation that the UK has already entered recession. | |
He said he thought looking at the benefit levels of people who had been made unemployed would be a good start. | He said he thought looking at the benefit levels of people who had been made unemployed would be a good start. |
Mr Boyd added: "I think the major danger facing the economy and society at the moment is the potential for a deep and prolonged recession. | Mr Boyd added: "I think the major danger facing the economy and society at the moment is the potential for a deep and prolonged recession. |
"I think we're still living with the impacts of the recessions of the 80s and 90s, so I think we should have learned the lesson that doing all we can at this moment in time to help avoid a deep and prolonged recession will pay back in the future." | "I think we're still living with the impacts of the recessions of the 80s and 90s, so I think we should have learned the lesson that doing all we can at this moment in time to help avoid a deep and prolonged recession will pay back in the future." |
Funding row | |
Mr Salmond has also demanded a further cut in interest rates from Westminster, alongside a big public spending programme and the release of up to £1bn of what Mr Salmond claims is "Scotland's money" lying unused in various accounts in London. | |
However, Yvette Cooper, chief secretary to the Treasury, has dismissed the calls for £1bn of funding. | |
In a letter, she said: "It is not clear where this figure is derived from but it appears to comprise six elements, all of which have been misrepresented." | |
Meanwhile, the independent Lothians MSP Margo MacDonald has written to Edinburgh's four MPs - one of whom is Chancellor Alastair Darling - asking them to look again at the proposed takeover of the bank by Lloyds TSB. | Meanwhile, the independent Lothians MSP Margo MacDonald has written to Edinburgh's four MPs - one of whom is Chancellor Alastair Darling - asking them to look again at the proposed takeover of the bank by Lloyds TSB. |
She said she was hoping they would be able to address fears of possible job losses if the deal went ahead. | She said she was hoping they would be able to address fears of possible job losses if the deal went ahead. |