Tuesday 10 May 2011

Scottish Independence a few figures

Also in the vote the SNP got a majority government in the Scottish Parliament so I am greatly looking forward to the referendum on Scottish Independence which I personally should extend to the entire UK so we can all get a chance, I will in fact be calling on my MP that in the case of a “No” result that the rest of the UK get a vote on if we still want them.

Over the next few years I am sure I will blog extensively on this topic as it would be the biggest political change in a few hundred years (I guess since 1707) however first I wanted to post a few facts and figures (Taken from the Scottish Office research) just to put it into some context.

• Scotland's public finances exhibit a structural fiscal deficit, having not been in surplus since 1980-81.
• Even adding all tax revenues from oil and gas production for all of the UK reduces but does not eliminate this deficit over time. For the period 1980-81 to 2007-08, the cumulative net deficit, after adding tax receipts from all UK offshore oil and gas production, amounts to £23.5 billion.
• Notwithstanding the success of devolution, the UK Government retains a large and direct role in the provision of public services in Scotland. Spending by the UK Government on reserved matters, either directly in Scotland (such as on pensions, tax credits or research council funding) or on behalf of Scotland at the UK level (for example defence and overseas representation) amounts to 40% of the total of all Government expenditures in or on behalf of Scotland.
• The largest single item of expenditure in Scotland each year by either the UK or Scottish Governments is on social protection -such spending by the UK Government amounted to £12,647m in 2007-08.
• The scale and importance of UK Government social protection expenditure to Scotland is emphasised by comparing it to the total expenditure by the Scottish Parliament. In the past 6 years, UK Govt social protection expenditure corresponds to between 45% and 39% of the total expenditure by the Scottish Parliament.
• Total spending by the UK and Scottish Governments in Scotland currently amounts to 145% of the total of Scottish tax receipts. Hence a fiscally autonomous Scotland would be dependant on the continuance of a fiscal transfer from the UK to maintain current levels of public spending. Equally, a fiscally autonomous Scotland could not make any contribution towards the provision of goods provided at the national level, such as defence, the regulation of markets or overseas representation whilst maintaining current levels of public expenditure.
• The deficit between Scottish tax receipts and the sum of UK Government expenditure on social protection payments plus the entire budget of the Scottish Parliament was around £6.2 billion on 2007-8, equivalent to around £2,700 per household.

So basically Scotland operates at around a £6b deficit and this does not include spending on military and other “Nation” expenditure. Now I am not actually of the opinion that England subsidises Scotland anymore than I accept that England is subsidised by Scotland, what we have is a Union where everyone works together and both sides benefit however if the SNP want independence then I fully support them, it is a Union that was entered into as Scotland was bankrupt and England feared they would enter a union with France to pay of their debts. We are no longer at war with France so there is no fear from Scotland being bankrupt again so why not let them go and see how they get on. And after all just think of all the money we would get from the 2.5 Million people of Scottish decent having to apply for working visas or losing their rights to state benefits/the NHS.

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