Continuing tough economic conditions demand the Scottish Government be allowed to bring forward further vital infrastructure investment, John Swinney has said.

The Finance Secretary was speaking on Friday as the Scottish Government published its latest assessment of Scotland's economy.

With evidence to suggest that Treasury predictions of UK growth in 2010 are overly optimistic, Mr Swinney said that ongoing accelerated capital spending is vital.

He said: "This latest assessment of the economy underlines that conditions are still extremely tough.

"Businesses and households continue to face real challenges. This just underlines the importance of our swift response, putting in place a comprehensive economic recovery plan, which is supporting some 15,000 jobs across Scotland."

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A key element of the plan is accelerated infrastructure spending this year, delivering vital investment and sustaining construction jobs across the country.

"But unless we are given the chance to go on investing this kind of positive action will be jeopardised. That is underlined by evidence which suggests the Treasury's growth forecasts for next year are optimistic at best," he continued.

"Given the uncertain outlook for the UK economy, the Chancellor should use his Pre Budget Report this autumn to allow the Scottish Government to further accelerate the capital budget into 2010/11 from the following year. This will ensure that none of the positive impact we are making in turning round the recession through enhanced capital investment is undone, but is maintained and indeed intensified."

The publication shows that the UK Government's growth forecast for 2010 remains optimistic compared to the latest forecasts from the IMF and the OECD for the UK economy.

UK Government forecast growth of +1.25% in 2010. In contrast, the IMF and OECD forecast growth in 2010 of just +0.2% and 0.0% respectively.

(GK/BMcC)