THE SNP has said the Chancellor is “threatening the recovery” by cutting off support for jobs and businesses as new figures revealed the UK economy shrank by a record 9.9% last year – which was the biggest slump for a G7 country – and the worst year on record since 1709.

Responding to the Office for National Statistics (ONS) figures, Alison Thewliss MP said Rishi Sunak must rule out a return to Tory austerity cuts and instead commit to a major fiscal stimulus of at least £98 billion, the equivalent of five per cent of GDP, to support economic growth.

The SNP shadow chancellor said the only way to secure a strong, fair and equal recovery was for Scotland to become an independent country and that the people of Scotland have the right to determine their own future, in a post-pandemic referendum.

Commenting, she said: “The Tories must not pull the rug out from under the economy by cutting off support for people’s jobs, incomes and businesses at the time it is needed most.

“Just when the UK economy has suffered a record slump, the chancellor is threatening the recovery with damaging Tory austerity cuts that will hinder economic growth, make millions of people poorer and lead to rising unemployment. The UK is now among the worst-performing countries in the OECD due to the decisions made by this Tory Government.

“Instead of imposing a public sector pay freeze, cutting Universal Credit and scrapping the furlough scheme prematurely, the Tories must rule out a return to austerity and commit to a major fiscal stimulus of at least £98bn to revive the economy.

“Throughout this crisis, the Tory Government has blocked the devolution of financial powers and withheld crucial investment – leaving Scotland to respond with one hand tied behind our backs, while other independent countries have been able to take the action required.

“People in Scotland have the right to decide their own future, in a post-pandemic referendum. The issue at the heart of the election in May will be who has the right to decide what sort of country we should be after the pandemic – the people of Scotland or Boris Johnson?”

On the latest figures published today, Dr Liz Cameron, chief executive of the Scottish Chambers of Commerce, said: “There is little to cheer in the latest data. Despite avoiding a double-dip recession, output is still well below pre-pandemic levels. What these figures confirm is that 2020 was a historically bleak year for the UK economy.

“Modest growth at the end of 2020 is set to be followed by a substantial fall in output in the first quarter of this year as the current lockdown, the unwinding of Brexit inventories and disruption to UK-EU trade flows combine to suffocate activity. Many Scottish businesses have already encountered severe problems with the new EU-UK trading arrangements, particularly in our invaluable food and drink sector.

“While the vaccine roll-out offers some scope for optimism, the scarring caused by the pandemic is likely to crystallise as government support winds down.”