Scotland’s one-year budget will do little to inspire private sector employers, according to Ian Eker, public services director at Hays in Scotland.

Scottish finance secretary John Swinney announced yesterday that Scotland’s 2011/12 budget would be cut by more than £1bn.

Eker says: “With Scotland’s economy heavily reliant on both the construction industry and the public sector it comes as little surprise that figures announced today show that unemployment here continues to rise, in stark contrast to those South of the border. However, with the potential for a change in administration in May, a one-year budget does little to inspire private sector employers to make long-term plans and increase their provision of jobs.

“Scotland’s construction sector has suffered greatly over the past two years and with the industry expecting a 36% reduction in capital expenditure, measures announced today will have given some small comfort. The reallocation of £100m to support capital spending in 2011/12 is welcome and major projects including the new Forth Crossing and South Glasgow Hospital upgrades are expected to continue, which will provide much-needed jobs.

“But employers have to look past today’s immediate crisis to be able to plan efficiently for tomorrow. Only once the election is over can we expect to see a significant improvement in business confidence and an increase in jobs that the economy, and indeed skilled workers, so desperately need.”