The UK Government needs to commit to a substantial reflation package to prevent the economy suffering further, the Scottish Government has said.

Enterprise Minister Jim Mather made the call after new unemployment figures showed Scotland in a slightly better position than the UK as a whole, with 4.7 per cent unemployment compared to the national average of 5.8 per cent.

Unemployment in Scotland remains slightly lower than the same period a year ago, down 0.1 per cent, compared to a 0.5 per cent increase across the UK over the last 12 months. The change in the unemployment rate in Scotland is roughly similar to a year ago, suggesting the impact of the downturn has so far been less serious north of the border.

"While the labour market in Scotland remains relatively strong, with higher employment and significantly lower unemployment than elsewhere in the UK and other advanced economies, today's figures show that we are not immune from a global economic downturn," Mather said.

"Already we have announced accelerated housing investment, delivered planning reforms, opened up public sector contracts to small- and medium-sized businesses, upped the advice we provide to manufacturing businesses, and provided government money to help create and safeguard jobs and stimulate investment in our economy.

"We also need a programme of reflation from the UK Government to boost the wider economy," he added, stressing that such a move is "a matter of urgency".

The Chancellor's pre-Budget report – expected within a week or so – is being trailed to include tax-cutting measures to bolster the economy, although Labour's belief that such plans could be paid for through increased borrowing have been criticised by the Tories.