New figures have revealed that Scotland’s economy performed only half as well as the rest of the UK last year, amid warnings that tax hikes taking effect from Friday risk damaging to economic growth.
The latest Scottish Government statistics show that GDP grew by 0.3 per cent in the last three months of 2017.
Annual growth for Scotland was 0.8 per cent higher than the previous 12 months, but the UK economy grew over the same period by 1.8 per cent.
The Scottish Conservatives said the statistics were the fault of SNP administrations that have been in charge of the country’s economy for more than a decade.
David Mundell, the Scottish Secretary, claimed that while it was good that GDP continued to grow, for the fourth quarter in a row, it was ”increasingly concerning that a significant gap persists between Scotland's economy and the rest of the UK”.
He added: "The Scottish Government has the powers to boost productivity and strengthen the economy, and must use them to close this gap.
“By making Scotland the highest taxed part of the UK, the Scottish Government risks damaging, rather than growing, our economy."
Dean Lockhart, the Tory economy spokesman said the SNP could not blame anyone else, adding: “It’s not because of Brexit and not because of Westminster. It’s been caused by the actions of a short-sighted, high-tax and anti-business SNP government.”
The Scottish Parliament ratified the SNP administration’s tax plans in February, which will mean people earning over £26,000 paying more tax than those south of the border.
The new five-band system creates a 19p "starter" rate for lower earners and a 21p "intermediate" rate for earnings over £24,000. A penny has also been added to both the higher and top rates of tax, making them 41p and 46p respectively.
Jackie Baillie, Scottish Labour’s economy spokesman, said any amount of economic growth was welcome, but claimed the figures exposed “how Scotland’s pitiful economic growth under the SNP is low and slow”.
She added: “Scotland’s economy is still lagging far behind the rest of the UK, while the continued contraction in the construction sector is a particular concern.
“Scotland deserves better than SNP ministers content to put their fingers in their ears, do nothing and blame bad economic performance on Brexit.”
Scotland’s quarterly growth was slightly up from the previous quarter figure of 0.2 per cent, and slightly behind the 0.4 per cent economic growth seen across Britain.
However, construction decline by 2.6 per cent, the eighth consecutive fall, with agriculture, forestry and fishing also reduced.
The services sector, making up about 75 per cent of Scotland's economy, grew by 0.5 per cent while output in the production sector was up by 0.9 per cent.
The Liberal Democrats branded the figures "pathetic", with the party’s economy spokesman Cllr Carolyn Caddick stating: "People will be disappointed that for all their speeches SNP ministers have not been able to keep pace with the growth in the rest of the UK. UK growth itself is pretty pathetic.”
Nicola Sturgeon, visiting a power firm in Dumbarton, said her government was working to support businesses despite t"he Brexit headwinds".
She added: "This is the fourth consecutive quarter of positive economic growth in Scotland and we are seeing growth his year that is stronger than the growth in our economy last year.
"Its important that we continue to support businesses and companies across Scotland to see that growth accelerate - that's why we're investing in research and development, its why we've set out plans to establish a National Investment Bank, investing in manufacturing and supporting the economy in every way.
"Of course one of the biggest challenges Scotland and the UK faces over the next few years is Brexit, which is why its so in the interests of our economy to see Scotland remaining in the single market."
Jamie Hepburn, Minister for Employability and Training, said that compared to the same point in 2016, Scotland's economy grew by 1.1 per cent.
He added: ”These figures are welcome, but we are determined to do more to grow our economy.”