Indyref2: SNP sends a financial deficit warning to Maurice Golden
The Institute for Financial Studies (IFS) report estimated that Scotland’s budget deficit in 2020-2021 had risen to between 22% and 25% of national income, up from just 8.6% the year before. The deficit is not as large as projected in the latest IFS analysis in August and does not reach the same levels as in Wales or Northern Ireland, but it is still higher than the expected deficit of 16 percent of the kingdom’s national income. Integer for the same year. The IFS has warned that Scotland’s “implicit budget deficit” will decrease as the effects of the COVID-19 crisis on public finances diminish.
But this is likely to remain “much higher” than in the UK as a whole, unless oil revenues rise or there is a major recovery in economic performance.
The expert group said this reflected “ higher levels of per capita public spending – substantially for delegated public services – in Scotland, and slightly lower levels of per capita tax revenue per capita compared to the UK in its group.
“The gap between Scotland and the UK as a whole is very similar,” said David Phillips, Associate Director of the Research Center [to the previous analysis] It is more structural than cyclical.
“Even if the UK’s public finances were balanced, we would expect the deficit in Scotland to be around six per cent of the national income.”
Scotland’s deficit could rise to 25% of GDP (Image: GETTY)
Nicola Sturgeon is campaigning for a second referendum on Scottish independence (Image: GETTY)
The IFS report goes on to estimate that Scotland’s deficit will shrink to less than 10% in 2025-26.
Critics of Scottish independence have warned that if a secession from the United Kingdom occurs, the huge deficit will have to be controlled through strict austerity measures.
The group of experts agreed and warned: “The remittances made to Scotland, Wales and Northern Ireland (and in fact to the North, the Midlands and England) are normal within a Malian Union, but will cease under independence or independence.”
“To offset the end of these remittances, a combination of tax increases or spending cuts will be needed, unless faster economic growth is achieved in the independence or full financial independence scenario.”
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Boris Johnson rejected all SNP demands for a second independence referendum (Image: GETTY)
SNP’s Finance Minister Kate Forbes insisted that the Scottish economy could recover from the pandemic, provided the right plan was in place.
But he launched an angry attack on the UK government, accusing the Conservatives of making “deep cuts in Scotland”, threatening to destroy any progress the UK government was making.
Skye, Lochaber and Badenoch MSP said: “The recent IFS update shows that with the right plan, Scotland’s economy could grow faster.
“But the big Governors’ cuts to Scotland from Westminster risk ruining any progress the Scottish government is making.”
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SNP’s Kate Forbes criticized the Conservative government (Image: GETTY)
Maurice Golden issued a huge warning about the financial adverse impact of independence (Image: GETTY)
Scottish Prime Minister Ms Sturgeon said the Scottish National Party would press ahead with a second referendum on Scottish independence if her party wins a majority in the Scottish election next Thursday.
This is despite Prime Minister Boris Johnson repeatedly refusing to transfer the relevant powers to Hollywood for a second vote, and insisting that the 2014 referendum was “one event in every generation”.
“We ask your permission in this election to hold a referendum on independence after Covid, when the crisis has passed, but at the appropriate time so that we can give our Parliament the full powers it needs to reinforce our efforts,” the Scottish National Party’s election statement said. Recovery time from Covid.
The statement also promises to abolish all fees in NHS dentists, double the exclusive Welfare payments in Scotland and provide free bikes for children.
Scottish independence can be very costly for the country (Image: EXPRESS)
But Scottish Governor Maurice Golden, Shadow Minister of Economy, Fair Labor and Culture, warned: “This respectable group of independent experts exposes the horrific economic reality of driving Scotland out of the United Kingdom.
“The nationalists are prepared to do incalculable damage to families and businesses. SNP can no longer afford policies like free prescriptions and tuition fees, as Scotland will face spending cuts and tax increases like we’ve never seen before.”
“When the focus must all be on recovery and rebuilding, this is unbelievable recklessness. Deep down the sturgeon must know the devastation this might cause.