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Sturgeon to face calls to abandon second independence vote Sturgeon to face calls to abandon second independence vote
(35 minutes later)
Scotland's first minister, Nicola Sturgeon, is likely to face calls at Holyrood later to abandon her plans for a second independence referendum.Scotland's first minister, Nicola Sturgeon, is likely to face calls at Holyrood later to abandon her plans for a second independence referendum.
MSPs are expected to use a debate on the economy to argue that such a vote would cause damaging uncertainty for businesses.MSPs are expected to use a debate on the economy to argue that such a vote would cause damaging uncertainty for businesses.
Scottish ministers will argue that the main threat to the economy is Brexit.Scottish ministers will argue that the main threat to the economy is Brexit.
Ms Sturgeon has said she will "reflect carefully" on her plans after the SNP lost 21 seats in the general election.Ms Sturgeon has said she will "reflect carefully" on her plans after the SNP lost 21 seats in the general election.
She has conceded that proposals for a second vote on leaving the UK were a factor in the result.She has conceded that proposals for a second vote on leaving the UK were a factor in the result.
Scottish Conservative leader Ruth Davidson, who saw the number of Scottish Tory MPs rise from one to 13, has claimed: "Indyref2 is dead."Scottish Conservative leader Ruth Davidson, who saw the number of Scottish Tory MPs rise from one to 13, has claimed: "Indyref2 is dead."
In what will be the first formal chance for MSPs to debate the general election result, the Tories, Labour and the Liberal Democrats will challenge the SNP to shelve plans for another referendum.In what will be the first formal chance for MSPs to debate the general election result, the Tories, Labour and the Liberal Democrats will challenge the SNP to shelve plans for another referendum.
The Holyrood debate on "opportunities for growth" follows publication of the State of the Economy report by the Scottish government's chief economist.The Holyrood debate on "opportunities for growth" follows publication of the State of the Economy report by the Scottish government's chief economist.
The report confirmed growth overall in Scotland during 2016 of 0.4%, which was "below trend and expectation".The report confirmed growth overall in Scotland during 2016 of 0.4%, which was "below trend and expectation".
The oil and gas sector downturn continued to affect the economy last year, though there are emerging signs of confidence returning to the industry, the report found.The oil and gas sector downturn continued to affect the economy last year, though there are emerging signs of confidence returning to the industry, the report found.
Meanwhile, Scotland's labour market has "remained resilient", with unemployment below the UK figure and falling over the past year.Meanwhile, Scotland's labour market has "remained resilient", with unemployment below the UK figure and falling over the past year.
The report states: "Brexit continues to present a significant risk to business and consumer sentiment in Scotland with investment sensitive to changing market signals.The report states: "Brexit continues to present a significant risk to business and consumer sentiment in Scotland with investment sensitive to changing market signals.
"It also presents the greatest source of uncertainty for the outlook particularly beyond 2018. The range of independent forecasts for 2017 suggest growth of between 0.9% and 1.3% for Scotland.""It also presents the greatest source of uncertainty for the outlook particularly beyond 2018. The range of independent forecasts for 2017 suggest growth of between 0.9% and 1.3% for Scotland."
'Brexit uncertainty' Analysis by Brian Taylor, BBC Scotland political editor
Scotland's Economy Secretary Keith Brown said there was no doubt that the dip in oil and gas prices in recent years has had "a continuing effect on the Scottish economy". Will the SNP abandon independence? No. Will they abandon a referendum as the conduit through which independence is achieved? Absolutely not.
But the minister said uncertainty around Brexit was "the main concern" for business leaders. So what are they doing? Well, the may need to change the nature of the language.
He told the BBC's Good Morning Scotland programme that the "very rapid" depreciation in the price of oil and gas has had a major effect. I think they feel that they didn't get across sufficiently the point that the referendum they want on independence is at the end of the Brexit process.
But Mr Brown said there were signs of returning confidence and development activity in the North Sea, and pointed out that Scotland now had a lower unemployment rate than the UK as a whole. They kept saying: "When the prime minister says there shouldn't be a referendum now, we agree". So I think they will try and re-emphasise that.
He added: "What we are now seeing with Brexit is the push up in inflation, the impact that is having on people's lives in terms of wages. That will not be sufficient for their pro-Union opponents, who will say they don't care how it is rebranded or that it is being placed in contradistinction to Brexit - it is not wanted and it is not needed.
Economy Secretary Keith Brown said there was no doubt that the dip in oil and gas prices in recent years has had "a continuing effect on the Scottish economy".
But the minister said uncertainty around Brexit was the main concern for business leaders, while the "very rapid" depreciation in the price of oil and gas has had a major effect.
But Mr Brown said there were signs of returning confidence and development activity in the North Sea, and pointed out that Scotland now has a lower unemployment rate than the UK as a whole.
He told the BBC's Good Morning Scotland programme: "What we are now seeing with Brexit is the push up in inflation, the impact that is having on people's lives in terms of wages.
"So that's the challenge we have now - but we have kept many people in employment throughout the recession and subsequent Brexit uncertainty.""So that's the challenge we have now - but we have kept many people in employment throughout the recession and subsequent Brexit uncertainty."