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SNP’s plan for economy ‘won’t ease austerity burden’

A BLUEPRINT for economic growth after a Scottish breakaway has faced criticism for “relying on foreign investment” and keeping down taxes for the rich.

In its long-awaited report today, the SNP-commissioned “sustainable growth commission” insisted Scotland “can lift the growth performance … to take living standards to equal the best small countries in the world over a generation.”

But Scottish Labour leader Richard Leonard accused Nicola Sturgeon of ignoring “the sovereign will of the Scottish people.”

The commission recommended that Scotland keep the pound during a transition period after independence, with a separate Scottish currency a possibility after six economic tests are met.

A new Scottish Central Bank would be established, with part of its remit being to act as a lender of last resort. Critics questioned the feasibility of this without breaking away from sterling.

Ms Sturgeon said: "The task ahead is to match those other nations, creating more jobs and raising living standards, providing a better future for everyone who lives here.

"This report rightly doesn't shy away from the challenges we face but presents ways in which those challenges can be addressed — and sets out recommendations on currency — which as a country we should all debate and discuss."

The commission also suggested a package of tax breaks to encourage high-skilled economic migrants to move to Scotland.

And it recommends that corporation tax should not rise above the level in the residual Britain – which the Scottish TUC said was “deeply worrying.”

Mr Leonard criticised Ms Sturgeon’s attempts to continue the debate following the rejection of independence in 2014.

“We had an extensive debate … the sovereign will of the Scottish people was very clearly expressed and that was that we didn’t want to see a separate Scottish state created,” he told BBC radio.

And he said the projections for economic growth “appear to rely on more foreign investment rather than indigenous industrial growth.”

Scottish TUC general secretary Grahame Smith said: “The approach of the commission seems primarily to recommend further strategies without many tangible actions.

“Terms like ‘flexicurity’ do not sit well with the Scottish government’s commitment to fair work and inclusive growth.

“While a desire to reduce poverty and inequality is admirable, without a serious discussion about the need for increased taxation, investment and redistribution, this appears like wishful thinking.”

Conrad Landin is Morning Star Scotland Editor

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