Scottish independence news: Devastating study sinks SNP’s dream for independent Scotland | UK | News
Today the Financial Times reported there would be “a significant deterioration in Scotland’s fiscal position” if it is to become an independent nation. The reported stated: “Since the country’s independence referendum in 2014 suggests it will face a persistent deficit of almost 10 percent of gross domestic product.” The report said that this deficit was “well ahead of international norms”.
In response to the study on the economy of an independent Scotland, Scottish Conservative leader Douglas Ross said this report was a “reality check” for Nicola Sturgeon’s SNP.
He added: “This detailed analysis by a leading financial publication makes it clear there would be a ‘large hole’ in the finances of a Scotland separated from the UK.
“While my focus is on blocking a divisive referendum so we can rebuild post-pandemic, Sturgeon and Salmond’s Nationalists are obsessively determined to rip Scotland out of the UK.
“This report should serve as a reality check but of course Nationalists simply ignore basic economic truths.
Mr Ross then added that its was “irresponsible and unforgivable for SNP” to now continue arguing for an independent Scotland.
He claimed that it was wrong for SNP politicians “to continue to dupe the people of Scotland, knowing it would be the poorest in society who would suffer the most if they got their way”.
He added: “With a 10 percent deficit in public finances, Scots would face extreme tax rises and brutal cuts to public services like our NHS.
“The FT’s estimate that Scotland’s deficit would be almost 10 per cent of GDP means that the size of the tax increases or spending cuts needed to bring public borrowing down to manageable levels has doubled compared with the tight expenditure limits proposed by an SNP economic commission in 2018.
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“It could impose many years of spending restraint or higher taxes — or bet that financial markets would be willing to lend at very low interest rates to a new sovereign borrower with a large and persistent deficit.
“The SNP, which currently lacks a detailed economic prospectus for an independent Scotland, did not respond in detail to the FT’s estimates.”
The Financial Times report argued that an independent Scotland would need to raise taxes or cut public spending annually by the equivalent of £1,765 per person in the period after leaving the UK.
The report also suggested that in the 2014 plebiscite, the SNP said they could rely on North Sea oil revenues to secure a newly independent nation’s finances.
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The revenue from North Sea oils dropped because of falling oil prices, the sterling dollar exchange rate and increasing operating expenditures.
After the 2014 referendum, the price of oil plummeted and tax revenues have never recovered.
The Financial Times reports states that after, “the UK economy has fully recovered from the pandemic, an independent Scotland will have a deficit of 9.9 percent of GDP in the middle of this decade”.
The report added: “It would reduce to 8.7 percent of GDP with lower defence and other shared UK-wide expenditures.”
The news comes as Ms Sturgeon is hoping to secure an outright majority in the Scottish parliament election on May 6.
With an outright majority the First Minister is expected to demand Boris Johnson authorises another independence vote for Scotland.
In 2014 Scotland voted to stay within the union, with 55 percent voting in favour of remaining within the UK and a minority of 45 percent wanting to leave.