‘£6bn cash injection is needed’ for recovery
THE Scottish economy will need a massive cash injection to recover from the coronavirus pandemic and the lockdown measures. That is the conclusion from the government’s Advisory Group on Economic Recovery, which said Scotland needs more economic autonomy and the country must be prepared for a long debt repayment period.
Benny Higgins, chair of the group, said at least £6billion in stimulus money will be needed.
To respond to the growing economic crisis lockdown has created the expert group said the Scottish Government needs to be allowed to borrow more.
Mr Higgins said: “There is a strong case for the Scottish Government to have greater autonomy to use targeted fiscal measures to stimulate demand or incentivise behavioural change in the recovery period.”
Mr Higgins said the Scottish Government must be prepared to “have a repayment of debt approach that takes a very long time”.
He added: “We’ve got to adopt that approach but it makes it all the more important that we focus our energy on the systemically important parts of Scotland that will form the basis of a stronger, better Scotland in future.”
Other recommendations include a job guarantee programme for 16 to 25 year-olds, of two years of work paid at the real living wage.
It recommended prioritising a green recovery, strengthening the relationship between business and government and investing in digital infrastructure.
Nicola Sturgeon said the Scottish Government agreed with the principles of the report. She said: “Many of its themes – for example the importance of education, employment and tackling inequalities – are clearly going to be critical to our economic recovery.” Business leaders in Glasgow said cities as the drivers of the economy need targeted investment.
Stuart Patrick, Glasgow Chamber of Commerce, chief executive, said: “We applaud the focus on investment-led recovery and the need for creation of jobs at an unprecedented rate and endorse the call for innovation in skilling and re-skilling and the need to reduce the impact of the crisis on the futures of our young people.
“We agree on the prioritisation and delivery of green investments – particularly in the circular economy – and also on the mobilisation of investment in digital infrastructure as a key force for resilience and growth and a direct job creator, but are disappointed on the report’s lack of focus on Scotland’s cities, which are the drivers of the country’s economy.”
The latest coronavirus statistics showed there had been another 14 positive cases reported, taking the total since the outbreak began to 18,170.
There were 867 people in hospital with confirmed of suspected coronavirus, an increase of 66, but a decrease of three who were confirmed.
No deaths were registered, so the total remained at 2472 for deaths where a positive case had been recorded.
In the Greater Glasgow and Clyde health board area the total cases since the outbreak started was 4830. There were 236 people in hospital and fewer than five were in intensive care.