Analysis by the UK government has found that Scotland’s future public finances would be substantially better were Scotland to remain part of the UK, making each Scottish person around £1,400 better off each year.
Here are the five building-blocks that contribute to the analysis behind the £1400 UK Dividend:
1. Scotland would start with a budget deficit
Based on Scotland’s current tax receipts and spending on public services, there would be a shortfall. This would result in more borrowing and a bigger deficit.
2. Gas and oil production is in decline
The independent Office for Budget Responsibility estimate that oil and gas revenues will fall by around 95%, as a share of our economy, over the next 20 years.
Photo: irenicrhonda 3. Scottish population is ageing quicker than the rest of UK
The number of Scottish pensioners will rise from 1 million to 1.3 million over the next 20 years. A shrinking number of working age people would have to pay for a growing number of old age pensioners.
Photo: Mister GC 4. At least £1.5 billion needed to become independent
The cost of setting up new public institutions such as a tax collection office, passport office and transport organisations is an estimated £1.5 billion, based on 1.0% GDP.
Photo: David McKelvey 5. Scottish Government policy promises will cost £1.6 billion
This is the cost of the policies the current Scottish Government has set out in the White Paper Scotland’s Future and would look to pursue in an independent Scotland.