Bruce- Pre-budget marks tougher times ahead for all

12.00.00am UTC (GMT +0000) Tue 9th Oct 2007

Commenting on Chancellor Alistair Darling's first pre-budget report and Comprehensive Spending Review, which outlines Government Spending for the next three years, Malcolm Bruce, MP for Gordon has outlined his concerns.

Mr Bruce said:

"In the wake of the global credit crunch Mr Darling has not been able to deliver the same headline grabbing surprises that his predecessor had the habit of doing. Given that his predecessor is now his boss, he has does not have the luxury of hiding behind the previous Chancellor's record for the weakened economic climate Britain finds itself in either."

With confirmation that the growth forecast has been downgraded to 2%- 2.5% for 2008/09 (UK) and that borrowing has increased, Mr Bruce added:

"The downgrading of the growth forecast is likely to put the squeeze on what was already going to be a tight spending round. This was to be expected but the effects will be felt in Scotland too and the Scottish Government more than ever will have to convince us that their sums really do add up on promises concerning health, education, transport, council tax revenues, student endowments and international aid. Certainly there will not be room to fulfil these extravagant promises that they did not expect to be called to account for."

Commenting on the Comprehensive Spending Review (CSR) Mr Bruce expressed concerns over cuts to key government departments particularly the Department for Work and Pensions.

Mr Bruce added:

"As the boom years appear to be drawing to a close, smaller spending increases are going to have an impact. The Department for Work and Pensions; which is to receive a 5%-a-year real-terms cut over the CSR period faces a tough time in particular. With the tax credit system already in crisis and facing further criticism today in a report from the Parliamentary Ombudsman, and with a beleaguered Child Support Agency, the DWP will clearly have its work cut out trying to improve these key services which so many families depend on. It looks like the gap between rich and poor is set to grow even wider under this Labour Government."

ENDS