Latest Public Sector News

19.11.12

‘Fiscal challenges’ for independent Scotland

Scotland could face long-term financial difficulty if the country votes for independence from the UK, a new report suggests.

The independent think tank the Institute for Fiscal Studies (IFS) studied some of the fiscal choices that Scotland might face should it choose independence in the 2014 referendum.

In the short term, an independent Scotland would not face dissimilar problems to those facing the UK as a whole, presuming that Scotland took its “geographical share” of North Sea oil and gas revenues.

However, if North Sea oil and gas revenues fall as predicted, an independent Scotland would face greater problems than the UK in the longer term. Oil and gas revenues are very volatile, representing 20% of Scottish revenue in 2008-09 but just 12% in 2009-10.

The report stated that a new Scottish Government would need to put together a fiscal plan that would set out a long term path to sustainability.

David Phillips, one of the authors of the report said: “Independence would provide Scotland with an opportunity to set its own fiscal course. In common with all countries it would face constraints and would have to make, sometimes uncomfortable, choices.

“In the short run its higher public spending than the UK average could be covered by oil and gas revenues if these are assigned on a geographic basis. In the longer run the loss of these revenues would lead to tougher choices than those faced by the UK as a whole.”

For the full study, visit: www.ifs.org.uk/bns/bn709thw(00)zzx.pdf

Tell us what you think – have your say below, or email us directly at opinion@publicsectorexecutive.com

Comments

There are no comments. Why not be the first?

Add your comment

 

related

public sector executive tv

more videos >

last word

Prevention: Investing for the future

Prevention: Investing for the future

Rob Whiteman, CEO at the Chartered Institute of Public Finance (CIPFA), discusses the benefits of long-term preventative investment. Rising demand, reducing resource – this has been the r more > more last word articles >

public sector focus

View all News

comment

Peter Kyle MP: It’s time to say thank you this Public Service Day

21/06/2019Peter Kyle MP: It’s time to say thank you this Public Service Day

Taking time to say thank you is one of the hidden pillars of a society. Bei... more >
How community-led initiatives can help save the housing shortage

19/06/2019How community-led initiatives can help save the housing shortage

Tom Chance, director at the National Community Land Trust Network, argues t... more >

interviews

Artificial intelligence: the devil is in the data

17/12/2018Artificial intelligence: the devil is in the data

It’s no secret that the public sector and its service providers need ... more >

the raven's daily blog

NSPCC: Working together to improve the support available for children who have been sexually abused

08/10/2019NSPCC: Working together to improve the support available for children who have been sexually abused

Hayley Clark, the acting head of development and impact at the NSPCC, talks about the significant gap in support services for children who have been sexually abused and the Ho... more >
read more blog posts from 'the raven' >

editor's comment

25/10/2017Take a moment to celebrate

Devolution, restructuring and widespread service reform: from a journalist’s perspective, it’s never been a more exciting time to report on the public sector. That’s why I could not be more thrilled to be taking over the reins at PSE at this key juncture. There could not be a feature that more perfectly encapsulates this feeling of imminent change than the article James Palmer, mayor of Cambridgeshire and Peterborough, has penned for us on p28. In it, he highlights... read more >