Economic growth in Scotland has "flatlined", the country's finance secretary John Swinney told MSPs today.

However the he pledged the Scottish Government will do all it can to help businesses and families.

And with figures today showing an increase in unemployment, Mr Swinney also announced that programmes to help people into employment were being expanded.

Mr Swinney said that £50 million of European funding had been announced in the summer for regeneration and employment projects in 11 areas.

Today he announced: "We are extending that support to Inverclyde and Clackmannanshire to support training and skills development."

He made the announcement as MSPs at the Scottish Parliament debated the economic crisis.

The finance secretary told MSPs that communities had been feeling the effects of rising prices for food and fuel, and an increasing number of Scots were worried about their job.

"The UK economy is now expected to enter a recession and we are beginning to see evidence of that weakening having an effect on the Scottish economy, where economic growth has certainly flatlined," Mr Swinney said.

"Such a broad threat has required a government that is prepared - as this one is - to stand up in the national interest and promote and defend Scottish livelihoods and employment.

"We will continue to take decisive action to focus on helping our businesses and households, to maximise jobs and investment and to provide a solid foundation for Scotland to take early and speedy advantage of any recovery."

Mr Swinney highlighted a number of measures that the Scottish Government has taken to help both households and businesses during the economic downturn.

He pointed to the freeze in council tax rates and cuts in rates for small businesses as evidence of this, as well as the Scottish Government's economic recovery plan.

He also highlighted £25 million for the Homeowners Support Fund to help those facing repossession, improvements to the planning system and work to reduce fuel poverty, with an extra £10 million invested in the free central heating programme this year.

But he said Westminster had a part to play too, stating: "We are taking forward, with determination, the importance of ensuring that we invest in public expenditure.

"And I hope the UK Government, as it considers the contents of its pre-budget report, takes adequate and due account of the need to invest in public expenditure to support the continued development of the Scottish economy."

The finance secretary also restated calls for £1 billion of funding held by Westminster, which Scottish ministers argue should come to Scotland, to be given to the Holyrood administration.

Mr Swinney said: "That is Scotland's money, that should be released to invest in the Scottish economy."