Scottish Secretary responds to Scottish GDP
Alister Jack says we must focus on supporting families in challenging times as the latest figures are released.
The latest Scottish GDP figures have been published this morning for聽听补苍诲听.
Responding to the statistics,聽Scottish Secretary Alister Jack said:
We are facing unprecedented global challenges, but our economy showed huge resilience emerging from the pandemic and I feel sure we will come through these uncertain times too.
Supporting families聽and businesses is our聽priority.聽A quarter of all UK households will receive 拢1200 of direct help as part of our 拢37 billion package to assist the most vulnerable, with聽the聽first cost of living payments already paid out to over seven million people.
Our steps to support businesses include聽slashing fuel duty, reducing employer National Insurance and freezing alcohol duty which helps pubs and our hospitality industry.聽All this is in addition to the Scottish Government receiving a record 拢41 billion per year settlement for the next three years.
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The extra bank holiday for the Queen鈥檚 Platinum Jubilee in June had a one-off effect in reducing economic activity that month. When we鈥檝e had similar Jubilee bank holidays in the past, we have seen falls in GDP within that month but have then seen a 鈥榖ounce back鈥� in the following month.
We have taken action to help households with 拢37 billion worth of support, which includes targeted support to help people through the difficult winter ahead phased throughout the year.
As well as direct cost of living payments, there has also been a record fuel duty cut. The National Insurance cut is worth up to 拢330 a year for the typical employee and聽changing the Universal Credit taper rate saves a typical low-income working household 拢1,000 per year in tax. In April, we raised the minimum wage to 拢9.50 鈥� meaning a pay rise of 拢1,000 a year for a full-time worker.
The Scottish Government has been provided with an extra 拢82 million to help vulnerable families at their discretion. This is in addition to the significant income tax and welfare powers they already have.
According to the Quarterly estimate (April to June), Scotland鈥檚 GDP remained unchanged (0.0% growth) in real terms during the second quarter of 2022 and is still 0.1% below pre-pandemic levels (2019 Q4). Over the same period, GDP in the UK as a whole fell by 0.1% and is now 0.6% above pre-pandemic levels.
Scotland鈥檚 onshore GDP聽is estimated to have fallen by 0.8% in June, after growing by 0.6% in May, and聽is now 0.4% above the pre-pandemic level in February 2020.