Fiscal Autonomy 'Could Double Scottish Economy'

Scotland could become one of the five richest countries in the world within 25 years - if it becomes fully fiscally autonomous.

Having full control of its finances would boost the country's GDP by nearly 90%, according to the business organisation N-56. That's in contrast to the Institute for Fiscal Studies' predictions that Scotland would suffer a budget deficit of £7.6bn if full fiscal autonomy was embraced.

N-56 is backing proposals for fiscal autonomy for Scotland, devolving fiscal powers from Westminster to Holyrood and highlighting that with the right political will this could be established in as little as four years. Their report noted that with this and the right economic strategy in place Scottish GDP could increase by 86% from a baseline of £153bn in 2012 to £282bn over 25 years, elevating Scotland to become one of the top five wealthiest countries in the world.

This would also increase GDP per capita by two-thirds from around £27,000 per capita to more than £45,000. Dan Macdonald, founder of N-56, said:

“Opinion polls consistently demonstrate overwhelming support in Scotland for fiscal autonomy and our report outlines how with this, the right economic strategy and collaboration between the public and private sectors we can transform Scotland’s economic position.

“Reports from the IFS which have been used as a critique of fiscal autonomy should in fact be viewed as a damning indictment of the current economic model, and if the model is not working it clearly needs fixing.”