RACHEL Reeves has been accused of offering “nothing for Scotland” – as she gave a major speech outlining her economic ambitions, including an announcement that the Government would back a third runway at Heathrow.
The Chancellor announced that Labour would approve the controversial and long-debated development at Europe's busiest airport – which she insisted would boost exports of Scottish salmon and whisky.
She pointed to research that showed that building a third runway at Heathrow would boost “potential” GDP growth by 0.4% by 2050, according to Frontier Economics.
Reeves added: “Over half, 60% of that boost, would go to areas outside of London and the south east, increasing trade opportunities for products like Scotch whisky and Scottish salmon, already two of the biggest British exports out of Heathrow.”
Heathrow is the UK’s gateway to the world, the Chancellor said, adding: “It connects us to emerging markets all over the world, opening up new opportunities for growth.”
In a speech in Oxfordshire on Wednesday, Reeves also hailed plans to boost what Labour are calling the “Oxford-Cambridge Growth Corridor” and estimated it could add up to £78 billion to the UK economy.
And she hailed already-announced plans for Glasgow to be dealt with as a “city region” as it had been under the Conservatives, on a par with areas like Greater Manchester and West Yorkshire in funding plans.
But the SNP said that it was the Labour Government that was the “biggest roadblock to economic growth”.
Dave Doogan (below), the party’s economy spokesperson, said: “Instead of fixing broken Brexit Britain, Rachel Reeves has taken the UK economy in the wrong direction with business confidence falling, job losses and unemployment rising, borrowing costs soaring, and high street shops warning they will be forced to put their prices up after the Labour Party’s bungled Budget.
“The growing warnings of UK stagflation – with sluggish growth, job losses and rising prices are a direct result of damaging Labour government policies, including the National Insurance tax hike and the decision to stay out of the EU single market, which is costing Scotland billions of pounds in lost trade, investment and economic growth every year.”
Doogan said the Chancellor was in “panic mode” as she attempted to “shore up her own position” after reports earlier in the year that there was speculation she may be for the chop.
He added: “This speech offered nothing for Scotland and, instead of delivering vital investment, the Labour government has cut £800million of supercomputer funding from Edinburgh, failed to deliver the £1bn of carbon capture funding Scotland was promised, failed to provide HS2 investment to Scotland, and failed to restore millions of pounds in lost EU funding for Scotland’s communities.”
Industry body Salmond Scotland, led by former LibDem MSP Tavish Scott, said the Chancellor was "absolutely right" to say expanding Heathrow would be good for business.
He added: "Scottish salmon is the UK’s number one food export and is the airport’s single biggest export by volume.
“Scottish business has long pressed for a third runway at Heathrow so we welcome this announcement and any measures that will support the sustainable economic growth of the Scottish and UK economy.”
The Scottish Greens reacted to the Chancellor's speech with fury, saying that expanding Heathrow would be a "climate-wrecking decision".
Mark Ruskell, the party's transport spokesperson, added: "A third runway will be a disaster for future generations; increasing carbon emissions at this crucial time for our planet's future is nothing but climate vandalism.
"Transport emissions across the UK are still far too high; we need to invest in reducing them through cheap and efficient public transport."
