Scottish unemployment continues to rise
In line with the trend for the whole of the UK, unemployment in Scotland increased by 7,000 to 212,000 in the three to April 2010, but there are worrying signs for the immediate future. While unemployment in Scotland now stands at around 8%, which is just above the 7.9% figure for the UK as a whole, there are concerns that the Scottish economy is not well placed to benefit from the eventual upturn.
The SNP government recently revealed that planned budget cuts in Scotland will be shelved for 12 months in order to give the economy the best chance of recovery in the short-term. As a consequence, unless we see a significant improvement in not only the UK economy but the Scottish economy, we could be in for a very difficult time in the 2011/12 fiscal year. In simple terms, the decision to delay implementation of budget cuts until next year will effectively see two rounds of budget cuts introduced in the same 12 month period.
While talk of Scottish independence has fallen by the wayside over the last few months there is growing concern that the SNP is still looking to put together a referendum on the subject. Against this backdrop, and taking into account the economic difficulties at the moment, this is not the best scenario for businesses and business leaders to contemplate further investment in Scotland.
Share this..
Related stories
UK government set to release Lockerbie bomber correspondence
The UK government and its Scottish counterpart are set to release copies of correspondence between the two regarding al-Megrahi as pressure on the UK authorities continue to grow. There is a feeling, and Foreign Secretary Jack Straw did nothing to allay these fears, that the UK government was railroaded into discussing a possible transfer of the Lockerbie bomb from Scotland to Libya some months ag...
Read MoreIs Alistair Darling a busted flush?
Amid signs of yet more discontent between number 10 and number 11 Downing Street many people are starting to write off the political future of Chancellor of the Exchequer Alistair Darling. His recent White Paper on the UK regulatory system for the financial markets hit the headlines with some eye-catching initiatives although ultimately many believe the paper is severely flawed and has a number of...
Read MoreIs the UK at risk of Japanese style deflation?
Adam Posen, a member of the Bank of England's MPC, has today warned UK investors of the potential risk of a Japanese style deflationary period in the UK. This warning is ever more important because this particular member of the MPC was brought on board because of his knowledge of the Japanese economy and the troubles which that area has encountered over the years. He cited a number of parallels...
Read MoreThe pound comes under more pressure on the foreign exchanges
Sterling yesterday fell to new record lows against the euro on news that the US car manufacturers bailout was hanging in the balance with many citing the potential knock-on effect to the UK industry. The car manufacturing sector in the UK supports literally hundreds of thousands of people both directly and indirectly and if this lifeline is taken away unemployment will soar.
While t...
Game Group issues disappointing trading statement
Game Group today issued a disappointing trading statement and a warning on future probability for the company. Sales in the company's UK and Ireland stores fell by 17.5% over December into early January even though there is "a sizeable installed base of hardware". Only a few months ago the company appeared to be more upbeat on the prospects for the festive period but these hopes have evaporated ov...
Read More