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Labour leader urges spending acceleration

Iain Gray MSP makes plea days after SNP Finance Secretary John Swinney makes same demand.

29 October 2009 10:42 AM

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Labour leader urges spending acceleration

Labour leader Iain Gray has written to the Chancellor urging him to allow more spending to be brought forward in a bid to boost the economy, it was confirmed on Thursday.

Mr Gray's letter to Alistair Darling comes days after SNP Finance Secretary John Swinney made the same plea.

However, the Labour leader has stressed that any accelerated capital must be used to fund projects that will help create jobs.

The Scottish Government has already spent money from future budgets, but Mr Swinney has argued that the continuing recession underlines the case for this to continue.

Mr Gray said Labour had first called on the Treasury to allow spending to be accelerated last year.

He stated: "It was Scottish Labour who called for the Treasury to allow the Scottish Government to accelerate capital last year and I am calling on the Chancellor to do so again."

However Mr Gray added: "The SNP must guarantee to use this money to invest in projects that will create jobs.

"SNP ministers admitted that less than a quarter of the money carried forward into last year's budget was used to directly support jobs in the construction industry. This simply isn't good enough."

And in his letter to the Chancellor Mr Gray said: "We want to see accelerated funding used to address the crisis in the construction industry and support a major expansion of the housing programme that will generate jobs and training opportunities for young people."

A spokesman for Mr Swinney said Labour's support for accelerated spending was "welcome however belated". He also said there were signs that the Treasury accepted the argument for more money to be brought forward.

The spokesman said: "The SNP Government has been proved right in the need for further accelerated capital spending to protect jobs and support the economy through Labour's recession, and all the signals from Downing Street and the Treasury in recent days indicates that the UK Government now accept our arguments."

Last updated: 29 October 2009, 14:29

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