The expert group warned in its annual report that Scotland is facing its "most severe financial crisis in recent years." The SNP must now put aside their ideological opposition to PPP and do what is best for Scotland, say Labour.

Scottish Labour leader Iain Gray said:

"Today's annual report from the Scottish Government's Council of Economic Advisers rightly identifies the need to increase spending on infrastructure. Their recommendation deserves careful attention.

"The UK Labour government has moved decisively to recapitalise the banks, lower taxes, bring forward capital spending and protect vulnerable home owners from repossession. Now, we need the Scottish Government to play their part.

"As Scottish Labour has consistently explained, the biggest barrier to new projects is the Scottish Futures Trust. After 18 months, the SNP's unworkable scheme has failed to commission a single new school.

"The sad fact is that Alex Salmond is putting party politics before jobs and holding up hundreds of millions of pounds of badly needed investment because of his ideological opposition to PPP.

"I am prepared to work constructively with ministers on reform to planning laws and other sensible measures to promote growth, but in the interests of the economy they should dump the Scottish Futures Trust now." 

5 December