Indiref 2: Maurice Golden SNP sends a budget deficit warning
The Institute for Fiscal Studies (IFS) estimates that Scotland’s budget deficit for 2020-2021 will increase from 22% to 25% of national income – up from just 8.6% last year. This deficit may not be as large as predicted in the last IFS analysis in August, but it may not be the same level as in Wales or Northern Ireland, but it is still above the expected deficit of 16% of the United Kingdom’s national income. The whole same year. The IFS has warned that Scotland’s budget deficit could be reduced as the effects of the Kovid-19 crisis mitigate public finances.
If oil revenues do not rise again or make a significant recovery in economic performance, it will remain “significantly higher” than in the UK.
Think Tank said this reflects the high level of per capita public spending in Scotland – mainly for segmented public services – which is slightly lower than the average level of per capita tax revenue in the UK.
David Phillips, Associate Director, Think Tank, said: “The gap between Scotland and the UK as a whole is very similar. [to the previous analysis] It is more structural than cyclical.
“While the UK’s public finances are balanced, we expect Scotland’s deficit to reach 6% of national income.”
Scotland’s deficit could be as high as 25% of GDP (Photo: Getty)
Nicola Sturgeon campaigning for a second referendum on Scottish independence (Photo: Getty)
The IFS report estimates that the deficit in Scotland will be less than 10 per cent by 2025-2026.
Critics of Scottish independence have warned that a large deficit could lead to drastic austerity measures if it disagrees with the UK.
Think Tank acknowledged and warned: “Tax transfers to Scotland, Wales and Northern Ireland (actually the North, Midlands and England) are common within the ‘financial union – but will end under independence or” absolute financial autonomy “.
If rapid economic growth cannot be achieved in a situation of financial independence or autonomy, a combination of tax increases or cost reductions is needed to end these tax transfers.
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Boris Johnson rejects all SNP demands for a second independence referendum (Photo: Getty)
SNP Finance Secretary Kate Forbes has argued that Scotland’s economy could slide out of the pandemic as long as there is a proper plan.
The Tories have launched a scathing attack on the UK government over allegations that it has made deep cuts in Scotland. It threatened to destroy the progress made by the UK government.
MSP for Sky, Lochber and Badenoch said: “This latest update from IFS shows that the Scottish economy can grow rapidly if the right plan is implemented.
“But a deep cut by the Tories from Westminster to Scotland would ruin the progress the Scottish government has made.”
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SNP’s Kate Forbes lashes out at Tory government (Picture: Getty)
Maurice Golden warns of the devastating economic consequences of independence (Photo: Getty)
Scottish Prime Minister Miss Sturgeon has said the SNP will continue with its second referendum on Scottish independence if the party wins a majority in next Thursday’s Scottish elections.
Despite Prime Minister Boris Johnson’s repeated refusal to hand over the relevant powers to Holyrood for a second vote, he argued that the 2014 referendum was “a one-generation event.”
The SNP election manifesto states: “We need your permission in this election to hold a referendum on independence after Kovid – when the crisis is over, but it is time to give Parliament its full powers. Lead our long-term recovery from Kovid. “
The manifesto promises to remove all fees charged by NHS dentists, double the amount of a social assistance payment set aside for Scotland, and provide children with generic bikes.
Scottish independence would be costly for the country (Image: EXPRESS)
But Maurice Golden, the Scottish Conservative secretary of the shadow cabinet for economics, fair work and culture, warned: ‘This esteemed independent think tank exposes the economic reality of overthrowing Scotland. From the United Kingdom.
Nationalists are ready to inflict untold damage on families and businesses. The SNP can no longer afford policies such as prescription and tuition because Scotland will face cost cuts and tax increases like we have never experienced before.
“It simply came to our notice then that we had to give our all for redemption and reconstruction,” he said. Deep down, the sturgeon should be aware of the damage that can occur.