Scotland still lags UK - Swinney

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A new report casting doubt on the reliability of government data on the state of the Scottish economy has been disputed by a minister.

Finance Secretary John Swinney, on a visit to Inverness, said all the evidence he has seen showed Scotland lagging behind the rest of the UK.

A Scottish think-tank, however, reports the economy may be growing at a higher rate than previously thought.

Mr Swinney said he was "pretty clear" Scotland's performance was slow.

The Centre for Public Policy for Regions (CPPR), run jointly by Glasgow and Strathclyde universities, said executive figures showed no growth in Scotland's retail sector and only 1% in the hospitality sectors in the last six years.

Researchers said this period was at a time when the sectors were booming in the UK.

If Scotland's growth in these two sectors reflected the rest of the UK, that would put Scotland's growth rate up to 2.35%, according to CPPR.

Executive figures showed Scotland's growth rate has been put at 2% a year compared with the UK's 2.7%.

More successful

Mr Swinney, who was in Inverness to meet Highland Council, said the new report was "one of the very limited evidence" that there was not an economic gap.

He added: "I am pretty clear over the piece that the Scottish economy has been performing at a slower rate, growing at a slower rate, than the rest of the United Kingdom.

"And certainly growing at a much slower rate than with the countries with which we should be compared, so I think it is essential we focus our efforts and energies on making Scotland more successful."

Mr Swinney said he has now met with 18 out of 32 local authorities over the summer recess.