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Sturgeon “mostly protected by the UK” after oil revenues devastated Scotland | UK | News

Scottish First Minister It’s in the final stages before this week Holyrood election..She wants to secure a majority with her Scottish National Party Her claim (SNP) will empower her to call a second independent referendum. But for the past few weeks, Ms. Sturgeon has avoided suggesting that Indyref 2 will be held this year.

She instead said Scotland had to focus on recovering from the collapse of the coronavirus pandemic.

Many question how feasible an independent Scotland is.

Critics say the country will not be able to rely on historically profitable oil and gas income. Scottish economy..

This is the result of a previous plunge in revenue, as well as a gradual switch to renewable energy.

In 2016, a report from the Institute for Fiscal Studies (IFS) revealed how Scotland achieved it. Independence In 2014, we faced the challenges of tax increases and spending cuts to fill a black hole of over £ 10 billion.

This is because the UK as a whole will return to the black by the end of the decade as crude oil costs fall by $ 115 a barrel (£ 82) in the months leading up to the 2014 referendum, while Scotland’s budget But the deficit will be more than 6% of national income.

Not surprisingly, Scotland was part of the UK, so it was largely “isolated” from the effects of lower oil revenues.

“The numbers on the Scottish deficit will be much more important once it becomes fully responsible for managing its own finances.

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Between 2019 and 20 years, the country’s share of North Sea oil and gas tax revenues fell by about half again to £ 724 million, according to tax and spending figures.

Data published in the 2019-20 Government Expenditure and Revenue Scotland (GERS) report show that the country’s net fiscal balance, including North Sea revenues, was a £ 15.1 billion deficit, 8.6% of gross domestic product (GDP). Was shown. , Compared to the £ 13.2 billion shortfall in 2018-19.

This was compared to the UK’s total deficit of 2.5 percent of GDP.

Nevertheless, supporters of independence say the country will find income in other areas.

Alex salmondFormer First Minister of Scotland and current leader of the Aruba Party, Scotland previously claimed that a tax increase of £ 250m per year was possible without a tax increase.

He said this would be done by reforming the country’s archaic tax system, making it more difficult for people to avoid taxes and commit fraud.

Sturgeon also EU member states In her view, it will provide a way for external income.

She suggested that Brussels “open arms” to welcome Scotland.

In January, she wrote on the SNP website: “As an independent member state of the EU, Scotland will be a partner and a bridge.

“I’m looking forward to seeing you again.”

Still, a recent study conducted by London School of Economics (LSE) economists found that rejoining the EU could not reverse the withdrawal from independence.

Trade costs between Scotland and the UK will skyrocket by an estimated 30 percent.

This will have a devastating blow to the north of the border export In 2018, we will offer £ 51.2 billion in goods and services to other parts of the UK, as the UK may choose to buy elsewhere if prices rise.

Sturgeon “mostly protected by the UK” after oil revenues devastated Scotland | UK | News

SourceSturgeon “mostly protected by the UK” after oil revenues devastated Scotland | UK | News

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