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Out of recession, to what?

Douglas Fraser | 07:50 UK time, Monday, 18 October 2010

"We have emerged from recession in better shape than the rest of the UK," according to John Swinney, Scotland's finance secretary, speaking to the SNP conference in Perth.

Is it? Not if you look at the employment and unemployment figures.
Both started the recession in a better position, but that has since reversed.

Nor is it true if you look at the growth figures. Scotland's economy was flat-lining in the first quarter of this year. There's an update this week, giving us the second quarter figures, so maybe Mr Swinney knows something about those statistics that we don't, yet.

But as the UK figure was 1.3% in that one buoyant quarter, Scotland will have to go some to look better.

So what did the minister mean when he said Scotland's emerging in a better position?

The answer is that the dip wasn't so deep. The UK economy fell by 6.4% over the recession, while Scotland's contracted by 5.9%.

Drilling down

It's also being argued that youth employment looks better in Scotland than the UK as a whole.

In the survey for April to June, 62% of those aged 18 to 24 were in employment, compared with 59% of those in the UK.

Statistically, that's a risky argument, as drilling down into the Scottish employment figure relies on quite small numbers of people in the survey sample.

Then there's jobs in construction. With the help of the Scottish government keeping its foot on the capital expenditure accelerator during last year, construction employment went up by 9%, while across the UK it fell by nearly 6%.

The value of construction bounced back from very deep recession at a faster rate in Scotland.

That's the evidence.

You might say it involves quite selective use of statistics. And it's backward-looking.

Forward-looking

What about looking forward on the economy?

At the SNP conference, John Swinney said he wants to set up an Export Support Package for businesses, asking firms how best government can help overseas sales, and probably meaning a beefing up of Scottish Development International.

It would help if that organisation sorted out the long delay in appointing a chief executive - vacant since the start of the year.

More interviews this week.

SNP members heard a defence of an increase in business rates for many firms, without softening the blow of revaluation. Those who want that softening haven't explained where the money will come from, said Mr Swinney.

There is, however, money to abolish prescription charges and freeze council tax. The language was overwhelmingly about protecting public services, but not about where the cuts will fall.

Nor was there much mention of reform of the way services are delivered - apart from cutting the number of health service managers and the headquarters from which the police are run. Efficiencies like that don't equal reform of service delivery.

Demand pressures

Alex Salmond announced he's setting up a Commission for the Future of Public Services under Campbell Christie, former general secretary of the Scottish Trades Union Congress.

With the National Endowment for Science, Technology and the Arts warning today of £27bn of extra costs from rising demand pressures over the next 15 years - that's quite apart from cuts pressures - the Commission helps push difficult issues beyond next year's Holyrood election.

We'll have to wait and see whether the former trade unionist takes the reforming path or the protecting path.

If he reads the NESTA report, or any other independent writing on the future of Scotland's public services, he'll soon find that protecting public services as they are does not look sustainable.

Comments

  • Comment number 1.

    Dear Douglas,
    I keep an weather eye on the jobs pages and indeed have seen a reduction of attractive positions being advertised.

    But I put this to you, If the Scottish Government had our FULL financial resources behind it, rather than the paltry hand outs that Westminster throws grudgingly in our direction then maybe a) we would not have been in recession in the first place, or b) we could be creating right now TENS OF THOUSANDS of jobs in the renewable energy sector.

    But of course we are not fiscally responsible for out own country, and never will be until the people of the west of this country who support the self serving Labour and Unionist party grow a pair and start to actually believe in their country.

    Unfortunately this will not change either until the TV media in this country start to broadcast impartial political news rather than the unionist, bias, guff they produce at the moment.

  • Comment number 2.

    Let Scotland be paid for and run by the Scottish people that is real democracy. Besides it saves the country being subsidised by the English.

  • Comment number 3.

    Head above recession parapet,one wonders? Just what would our beloved Alba be truly like without UK Defence / Civil Service jobs! What little we have left of manufacturing capabilities is truly miniscule, perhaps the westminster plan all along? Besides we will only ever get UK table scraps in relation to real longterm manufacturing that hails decades of prosperity! Events such as Glasgow 2014 bring limited, short term growth mostly for one region! At the higher end job market of Glasgow 2014, I'm guessing there can't be many of these executive big earners who are indigenous Glaswiegens let alone SCOTS....and just how reliant will Glasgow 2014 be for volunteers, again I'm guessing probably by quite a bit, But I'm sure some will get tokenist rewards....come the new year honours or whatever..............

  • Comment number 4.

    If Scotland truly was a burden to the English, you would think that we would be the first thing cut. No more subsidies to the whinging Scots.

    Instead, they cling on to us steadfastly whilst at the same time stripping our assets.

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