Tuesday, 5 August 2014

Scotland 'likely to be worse off after independence' Daily Telegraph

Declining North Sea oil tax revenues would hit an independent Scotland's finances


Economic think tank Fiscal Affairs Scotland draws the conclusion after analysing oil and debt figures produced by both the UK and Scottish Governments.


Scotland is far likelier to be worse off as a separate country, according to an impartial analysis published today as the man who hired Fred Goodwin at RBS accused Westminster of scaremongering over the country’s banks.

Fiscal Affairs Scotland said the wide range of estimates for oil revenue and national debt provided by the UK and Scottish Governments made it impossible to predict exactly what would happen following a Yes vote.

But the economic think tank said that for Scotland to be wealthier, it would have to strike a deal with Westminster to repay only half of its population share of the UK’s national debt while receiving almost twice the predicted income from the North Sea.

If Scotland inherited its full population share of the UK’s national debt, as expected, then oil revenues would have to meet the First Minister’s most optimistic possible forecast if it was not to be poorer.

The analysis was conducted in the wake of the Treasury’s claim the Union is worth £1,400 annually for every Scot, while Mr Salmond claimed independence could be worth £1,000 per person after 15 years.


Further Reading:

Alex Salmond's borrowing plans 'prove currency union won't happen'


“Fiscal Affairs Scotland’s independent analysis demonstrates again that the Scottish Government’s fantasy figures do not stand up to scrutiny. A separate Scotland means higher taxes and less money to spend on vital public services.


Independent Scotland's debt 'would force spending cuts or tax rises'




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