Why is the Scottish economy lagging the rest of the UK?
Over the last few months it has become obvious that the Scottish economy is currently the weakest in the UK and the situation could get worse before it gets better. Despite the fact that the UK as a whole, including England, Ireland, Wales and Scotland has pulled away from the recession the situation is still very difficult north of the border.
There has been constant friction between the SNP government and the UK government as a whole over budget cuts and other financial issues. Whether this friction has affected economic activity in Scotland is a matter for debate but there is no doubt that harmony between Scotland and England has been very much better in the past.
As we approach the Scottish parliamentary election next year the SNP has refused to introduce budget cuts in line with the reduced income from the UK government. There are many who believe this is political maneuvering on behalf of the SNP but at the end of the day, like England, there is a need to maintain confidence in the economy going forward.
The only problem which the SNP may have is the fact that cuts postponed this year will need to be added to next year's cuts which will mean a massive reduction in some areas of the public sector budget.
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