DUMBARTON MSP Jackie Baillie says that new figures showing a drop in Scotland's economy in the final quarter of 2016 shows the Scottish Government should 'get back to governing the country' and drop plans for a second independence referendum.

The figures highlight that the Scottish economy shrunk by 0.2 per cent in the fourth quarter of last year, compared to a UK-wide growth across the same period of 0.7 per cent.

Ms Baillie, who acts as Labour's Economy, Jobs and Fair Work spokeswoman, says that the figures represent 'compelling evidence' of the 'divisive' impact of Holyrood's decision to back plans for a second referendum.

She also criticised First Minister Nicola Sturgeon for failing to invest in the economy and local jobs, while 'swanning around the US talking up the prospects of another independence referendum'.

The director of business group CBI Scotland, Hugh Aitken, said that the figures showed Scotland finished last year on 'a low note'.

He continued: “Businesses are facing increased uncertainty and rising cost pressures, which has resulted in a number of recent closures and potential job cuts affecting hundreds of people across Scotland.

“The Scottish Government should therefore prioritise fast-tracking business rate reform, improving education attainment and setting a competitive tax regime to ensure Scotland is an attractive place to do business.”

Responding to the figures, Finance Secretary Derek Mackay said: “Scotland’s economy faces continued headwinds, such as the slowdown in the oil and gas sector and weak global demand. Despite these challenges, the foundations of our economy are strong with growth in 2016, unemployment falling and early signs that the situation is improving for North Sea operators.

“This shows the importance of announcements such as the investment by global professional services firm Genpact of plans to create more than 300 new jobs in Glasgow, recent investments in the energy sector and the importance of developing new industries, attracting investment and promoting Scotland overseas, such as through the First Minister’s current visit to the United States.

“Before the EU referendum, the UK Government told us Brexit will make us ‘permanently poorer’. What is now quite clear is the economic reality of the Brexit vote. We have already seen significantly lower consumer confidence in Scotland since the vote last summer. Now we see that feeding through into our growth figures and all of this is before the UK actually leaves the EU."