Gordon Brown's economic miracle is running out of steam

Commenting on the Pre-Budget Statement made by Gordon Brown today, Malcolm Bruce MP said:

“This budget marks a turning point for Gordon Brown's reputation as a strong Chancellor. The claimed economical miracle is clearly running out of steam. The economy is seriously unbalanced and he has been forced to increase borrowing over the next 2 years by £20billion in order to maintain his spending commitments without significant tax changes.

“The increase in borrowing is larger than expected and Mr Brown's aura of confidence is based on optimistic forecasts for later years.

“For Scotland, as a manufacturing and trading nation, Gordon Brown's micro-management initiatives may help here and there, but don't address the fundamental problem - lack of confidence, falling investment and weak trading. Agriculture, manufacturing, telecommunications, tourism and financial markets are all struggling in Scotland and Gordon Brown's statement does little to change this.

“If the overheated property market now turns down Labour's commitment to boost public services may be under threat. He needs to rebalance the economy now and he needs to ensure the public service commitments deliver real improvements otherwise his reputation and Labour's prospects will be in tatters. This imbalance is Gordon Brown's fault and not the responsibility of the rest of the world.

“Confirmation of the abolition of royalties on mature oil and gas fields is only completing the deal promised when he imposed a 10% additional tax on Scotland's vital oil and gas industry. The loss of confidence that caused is depressing investment at a time when the chancellor should be seeking to stimulate it. His treatment of the oil and gas industry is symptomatic of his lack of understanding of the unbalanced character of the Scottish economy.