To ask the First Minister what assessment the Scottish Government has made of any implications for its work to grow Scotland’s economy of the EY ITEM club spring forecast, which downgraded expectations for United Kingdom output over the next two years. (S6F-04049)

The EY ITEM club forecast reflects the negative impacts that global trade disruption and uncertainty will have on the economy, highlighting the need to commit ourselves to Europe and its single market.

We will continue to do all that we can to support businesses and households through those challenges. Our programme for government will focus on delivery, including targeted initiatives to boost Scotland’s economic prospects now and for the long term, particularly sustainable and renewable energy resources, to draw in new investment and create rewarding and well-paid jobs.

It is becoming increasingly clear to the Chancellor of the Exchequer that we cannot cut our way to growth, and the Labour Government must urgently abandon its tax on jobs and the austerity fiscal rules under which it is operating. Does the First Minister agree that abandoning those measures is key to unlocking greater investment in our economy, and can he speak to the actions that his Government is taking to stimulate growth?

The United Kingdom Government has taken on fiscal targets that it inherited from the Conservatives and which are enormously damaging to a growth agenda, and it has compounded that error with the increase in employer national insurance contributions, which will be a further depressant on growth in the economy. The conflict and contradiction between the rhetoric on growth and the reality of decision making is becoming ever more apparent, because of the global economic challenges that we face.

The programme for government will set out additional measures that the Scottish Government will take to build resilience in the Scottish economy, to support our economy to have an international focus and outlook, and to make sure that we support and encourage innovation in the Scottish economy, which is the route to success for Scotland.

One of the key issues that is holding back economic growth is the high cost of energy, which we have already discussed today. Last year, the Scottish Government was very enthusiastic about the idea of zonal pricing of electricity. Is that still its view?

There has to be a careful assessment of the impact of zonal pricing on a variety of factors. For example, will it bring down energy prices for householders, which is the absolutely critical and urgent priority? Will it secure the necessary investment in the future of our energy systems? Will it enable us to contribute towards the economic growth and economic development agenda? I notice that Mr Fraser asks me this question while being associated with a party that presided over sky-high energy prices in this country and did absolutely nothing about the problem.