*** A new era of scaremongering begins *** Scotlands public finances would face a £5 billion shortfall if full fiscal autonomy was handed to Holyrood, an economic think tank has warned. Ahead of the first meeting of a commission set up to deliver an enhanced package of devolution, Fiscal Affairs Scotland said the UK’s North Sea oil and gas revenues, £1.1 billion for the first half of 2014-15, would not be enough to make up for the loss of the Barnett Formula. The system has led to public spending per head being typically 20 per cent higher in Scotland than in England and would be removed in the event of full financial powers being devolved. The think tank made the claim as it published new figures showing that oil revenues for the first six months of the financial year 2014-15 was almost £1 million less than was received for the same period last year. John McLaren, an economist for Fiscal Affairs Scotland, said that demands for full fiscal autonomy - a position the SNP will set out in talks on further devolution - would lead to an end to the Barnett Formula and stated that declining oil revenues would not cover the losses. The warning came ahead of the first meeting of the Lord Smith commission tomorrow. The body was set up to deliver new powers from the main Unionist parties made during the referendum. Mr McLaren said: “The latest oil revenue data brings into focus Scotland’s future fiscal position under different funding scenarios. In particular, the Smith Commission needs to take into account the potential impact of continuing relatively low levels of North Sea revenues on Scotland’s budget, “if North Sea revenues are to be part of any negotiated package. “Our calculations suggest that, across a wide range of assumptions, full fiscal autonomy could lead to a significant shortfall in funding over what the current system delivers.
Posted on: Tue, 21 Oct 2014 16:21:15 +0000
Trending Topics
Recently Viewed Topics
© 2015