Claims first year of Independence would cost more than £10 Billion
A vote for independence would have cost Scotland more than £10 billion in its first year, a new report has claimed.
A vote for independence would have cost Scotland more than £10 billion in its first year, a new report has claimed.
The Scottish Government had earmarked March 24 as “independence day” if voters in the 2014 referendum had supported leaving the UK.
To mark the date, supporters of the Union published two separate studies looking at the financial consequences of a Yes vote.
Research by Europe Economics estimated the financial cost of independence to Scotland in the first year to be about £10.4 billion - with this made up from various factors such as a loss of UK Government funding, border control costs and government set-up costs.
Another study from economic commentator Kevin Hague said: “The likely price we would have paid for independence had there been a Yes vote would have been of the order of £9 billion a year; that's about £1,700 a year for every man, woman and child in Scotland.”
The Scottish Conservatives commissioned Mr Hague, who is not a member of any political party, to produce the report.
He argued that with recent Government Expenditure and Revenue Scotland figures showing Scotland had a deficit of £14.9 billion - the equivalent of 9.7% of GDP - in 2014-15, if the country had become independent it would need to have a “clear and aggressive deficit reduction programme in place''.
The commentator said: “Had Scotland voted Yes, EU and currency negotiations would place Scotland under pressure to rapidly find in the region of £9 billion pa through increased taxes or reduced spend. That's equivalent to £1,700 annually for every man woman and child in Scotland.
“None of this is to suggest that Scotland couldn't be an independent country or that raw economics should be the only consideration.
“But if we're to be honest about the economic implications, it now seems clear that independence will only happen within our lifetimes if the majority of Scots are willing to vote to become considerably worse off, quite possibly for generations to come.”