SNP calls on Chancellor to deliver a stimulus package to counter Brexit shockwaves

Speaking exclusively to the Sunday Herald he said: "It is clear we cannot wait until his autumn statement to hear what he is planning – he needs to send a signal now that he will get the economy moving by ending the Tory fixation with cuts and austerity."

Nicola Sturgeon's Holyrood Government is adding to the pressure on the beleaguered chancellor to come up with positive measures to bolster the economy. She has already said that Scotland's need to be "protected in the uncertain period that lies ahead".

A spokesperson said, “The Scottish Government welcomes the stimulus package announced by the Bank of England to help support the economy through these times of heightened economic uncertainty." Adding that, "it is now time for the UK to follow suit and provide the economic stimulus the economy requires and to provide certainty over future funding in order to enable the Scottish Government to provide full support to our economy.

“The Scottish Government and Scottish Parliament urgently need clarity on the details of the Autumn Statement to be able to plan, publish and scrutinise a budget for 2017-18. That is why the Finance Secretary Derek Mackay has written to the Chancellor calling on him to clarify his approach to the public finances to reduce uncertainty and bring further stability to the economy."

Hosie's backing for an "economic stimulus to avoid the negative impacts of the Brexit result" came as the Scottish Government also faced calls to launch a long-term industrial strategy to prevent mass job cuts and protect the living standards of workers.

The pro-independence Scottish Greens, trade union leaders and Labour politicians all called for the Scottish Parliament to speak with one voice to protect the economy from the fallout of the Brexit process.

Bank of England governor Mark Carney has already warned that unemployment will rise while wages and house prices will fall as a result of the uncertainty caused by the vote to leave the EU on June 23.

Interest rates were cut to a record low from 0.5 per cent to 0.25 per cent as the bank also unveiled a stimulus package worth £170 billion for the economy.

Scottish Labour’s economy spokesperson Richard Leonard said the SNP in Government should "become an anti-austerity party of government” as he called on ministers at Holyrood to match the calls of MPs such as Hosie with action when setting out their post-Brexit vote spending plans.

Leonard said: “The Scottish Government should use its fiscal powers to bring forward infrastructure spending, especially through a major public housebuilding programme. It should seek to retain access to the European Investment Bank. It should establish a Brexit Support Fund for at risk sectors of the Scottish economy.

"As a matter of urgency it should develop an industrial strategy and a plan for the Scottish economy. It should guarantee existing workers rights including health and safety protection." He added that the Government should also press to secure the continued right to remain of EU citizens and students working here."

Shadow Chancellor John McDonnell, echoing the call, said: "Given the uncertainty caused by the Brexit vote the administrations in both Westminster and Scotland need to step up to the plate now and launch an infrastructure investment programme to inject momentum into the economy.

"This will encourage private sector investors and protect against any threat of slowdown and possible recession. The Scottish Government has both the powers and access to resources to enable this strategic intervention."

Scottish Greens co-leader Patrick Harvie said Holyrood's overwhelming pro-EU majority had to resist any further austerity from Westminster and any erosion of employment rights by the Tory government.

He urged Finance Secretary Mackay to use new Holyrood powers to introduce progressive taxes in the Scottish Government's next budget. “The United Kingdom has not yet left the European Union and while negotiations are ongoing it’s essential that every opportunity is explored to keeping Scotland in the EU," he said.

"The Scottish Parliament will need to speak with one voice when challenging any forthcoming attempts by the Tory government to attack workers’ rights and action must be taken by the Scottish Government to protect our economy from the fallout from Brexit.

“We now know that European energy companies are reconsidering investing in renewables projects in Scotland. We therefore need the Scottish Government to work tirelessly to ensure that we’re still seen as a potentially leading renewable energy producer and that any additional funding can be made available to secure jobs in the sector."

John Park, assistant general secretary of the Community trade union, called on the SNP Government to clearly state what stimulus projects it would pursue to boost jobs and the economy.

He said: "The key thing is the development of an industrial strategy and the development of a plan to address the undoubted skills shortage that will follow Brexit.

"There has to be a stimulus from the Scottish Government to ensure that employers and employees can have confidence. The Scottish Government has to be very clear about what its planned infrastructure projects are going to be by putting an industrial strategy into place.

"It may be that some employers will use Brexit as an excuse to pull out investment so the Scottish Government has to drive up standards and protect jobs."

A UK Government spokesperson, in response, said: “The UK economy is strong, with employment at a record high, and the budget deficit reduced by almost two thirds. This is a direct consequence of the UK Government's successful economic stewardship. We are determined to continue to boost our economy and increase prosperity for everyone in the UK."

Economist Dr Mary Robertson of the University of Greenwich, added: "We don't yet know how severe the economic effects of Brexit are going to be, but the uncertainty unleashed by the referendum result is already taking its toll.

"It is asking too much of monetary policy to expect it to steer us through Brexit without intolerable economic costs. The case for active fiscal policy has never been starker. It's time for the Government to do its bit and spearhead a large-scale investment programme."

Figures released last week show that the level of home ownership in Scotland is in decline as first-time buyers continue to struggle due to high deposits and stricter lending. While Scotland remains one of the most affordable places in the UK to buy, those taking their first step on to the property ladder can expect to pay out a deposit of almost £18,000 before they even consider legal fees and other costs.