The SNP has warned the UK Labour Chancellor that her plans to impose a new era of Labour austerity are ‘ramping up the risk of a recession’.
It comes as new OECD forecasts downgraded growth for the UK ahead of next week’s Spring Statement with a separate report from the Resolution Foundation warning that the UK labour market is ‘already in recession territory’.
With the Labour Government briefing constantly of coming cuts ahead of next week’s emergency budget, the OECD has today downgraded its UK growth forecasts from 1.7% to 1.4%.
Growth for 2026 has also been revised down from 1.3% to 1.2%.
SNP Westminster Economy spokesperson Dave Doogan MP said:
“The Chancellor’s threat of a return to Labour austerity is clearly ramping up the risk of a recession.
“The Labour Party have clearly learned nothing from the Tories’ time in office – you can’t cut your way to growth.
“Instead of doubling down on the damage Labour have already done, it’s time for the UK Chancellor to finally change course.
“The Labour Party promised to fix Brexit Britain’s broken economy but instead it has made things even worse – with the weakest possible growth, GDP per person falling, increased unemployment, rising prices and looming austerity cuts.
“Families and businesses across Scotland are paying the price for the Labour government’s failure and its damaging policies, including the National Insurance tax hike and the political choice to stay out of the EU single market, which is costing Scotland billions of pounds in lost growth, trade and investment every year.
“Unless the Labour government urgently changes direction, the UK will face another lost decade of stagnation and decline – with families hit in the pocket as bills rise, wages are squeezed and people get poorer.”
