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Business failures mean Coalition should re-think its economic strategy

10 Jan 2011

Citizens Advice Scotland (CAS) have called on the UK government to re-think its economic strategy, in the light of today’statistics from KPMG showing a sharp rise in Scottish business failures.

Responding to the news that Scottish business insolvencies have increased by 25%, CAS Chief Executive Lucy McTernan said,

“The UK Government is pinning all its hopes on the private sector creating jobs, to offset the cuts it is making in the public sector. It is very worrying to hear therefore that businesses are continuing to fail and that more jobs are in fact being lost.

“CAB advisers across Scotland are continuing to see huge numbers of people who are suffering from the aftershocks of the recession. It seems they face an even longer wait for good economic news. The fact that the public sector in Scotland is bigger than in the UK as a whole means Scots will suffer more, if the strategy fails.

“Against these developments, the government needs to consider whether its strategy of public sector cuts is the right one. The victims of our struggling economy are real people, and it is their needs that should be put right at the heart of government policy. They have been through enough, and they need – and deserve – some hope that things are going to improve.”

For more information please contact Keith Dryburgh (0131 550 1015) or Tony Hutson (07976 592118).

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