Scotland would have to make “difficult fiscal adjustments” in the years after independence, a new report has said.
The Institute for Government (IfG), said Scotland’s deficit will likely be worse than the 7.7% of GDP reported in 2018-19 due to the Covid-19 pandemic, adding that the effect of the last year “could be lasting” on public finances.
While the IfG admits it is not clear what an independent Scotland’s fiscal position would be and that would be dependent on negotiations with the UK Government on issues like how much debt should the country be left with, the think tank says the current level of deficit, paired with maintaining the current level of public spending “would not be sustainable” if Scotland leaves the UK.
BBC News
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image captionDouglas Ross criticised the case for independence as he highlighted his party s plans for economic recovery
The Scottish Conservatives have said the case for independence is weaker than ever while on the campaign trail.
The think tank also said it was not clear what the country s fiscal position would be in that scenario.
The SNP s Kate Forbes, the finance secretary, said independence would give Scotland more control over its economy.
According to the IfG report, the budget deficit of an independent Scotland would probably be larger than the 7.7% of GDP figure reported in 2018-19 due to the Covid pandemic.
Scotland would have to make “difficult fiscal adjustments” in the years after independence, a new report has said. The Institute for Government (IfG), said Scotland’s deficit will likely be worse than the 7.7% of GDP reported in 2018-19 due to the Covid-19 pandemic, adding that the effect of the last year “could be lasting” on public finances. While the IfG admits it is not clear what an independent Scotland’s fiscal position would be and that would be dependent on negotiations with the UK Government on issues like how much debt should the country be left with, the think tank says the current level of deficit, paired with maintaining the current level of public spending “would not be sustainable” if Scotland leaves the UK.
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