Salmond Delivers Speech On Scotland's Finances

Claims independence will mean Scotland is billions of pounds better off.

Scotland will be £5 billion better off per year by 2029/30 if independence is passed, that's according to the Scottish Government.

A paper says Scotland's finances in 2016 would be similar to, or stronger, than both the UK and the G7 industrialised countries as a whole.

According to The Outlook for Scotland's Public Finances:

• Over the period 2008-09 to 2012-13 Scotland's relatively stronger fiscal position is estimated to have been worth £8.3bn, equivalent to £1,600 per person
• When compared to projections for the UK in 2016/17, including projected spending by the official opposition – Scotland’s finances are similar to or stronger than the UK in all scenarios
• Scotland's net fiscal balance in 2016-17 – taking account of all revenues and all spending including this government's immediate post-independence priorities such as childcare continues to be within the range set out in Scotland's Future.

The paper also illustrates the potential long-term benefits to Scotland's public finances from using the powers of independence to grow Scotland’s economy and create a more successful country. For example, following independence:

• A 0.3 percentage point increase in our long run productivity growth rate, which will narrow some of the gap with our competitors, could see tax revenues increase by £2.4bn a year by 2029-30
• Increasing our employment rate by 3.3 percentage points to move Scotland up to the level of the top five performing countries in the OECD could increase revenues by £1.3bn a year by 2029-30
• And increasing our population, but still by less than the projected growth for the UK as a whole, could increase revenues by £1.5bn a year by 2029-30.

Collectively such improvements amount to a boost to tax receipts of an additional £5 billion a year after 13 years.

Commenting on the paper, First Minister Alex Salmond said:

"Scotland is one of the wealthiest countries in the world, more prosperous per head than the UK, France and Japan, but we need the powers of independence to ensure that that wealth properly benefits everyone in our society.

"That wealth means we will start life as an independent nation with strong finances and huge economic potential.

"The latest figures show that by using the powers that only independence will bring we can deliver an independence bonus with increased revenues for Scotland.

"The choice Scotland will make in September is between the opportunity to grow our economy, to boost revenues and to invest in public services or to continue with an economic policy set in Westminster that ignores Scotland’s needs.

"This analysis shows that on all headline measures of the public finances, Scotland’s fiscal position is forecast to be stronger than or at the very least level with the UK position.

"This paper gives a very clear picture of what independence could deliver in economic terms for the people of Scotland. By increasing productivity by 0.3 percentage points per annum, boosting the working age population by less than the predicted UK rate, and increasing the employment rate by just over 3 percentage points, bringing Scotland up to the same standard as the top countries in the OECD, we can generate over £5 billion a year of extra revenues within 15 years, without increasing tax by a penny.

"People in Scotland are getting a raw deal under the current arrangement – paying more into Westminster than we get out. In the five years to 2012-13, Scotland has on average accounted for 9.5% of UK tax receipts with estimates showing we have received 9.3% of UK public spending.

"Tax receipts in Scotland have averaged £10,000 per head over this period, £1,200 or 14% higher than in the UK as a whole."

Our reporter, Greg Russell has been speaking to the First Minister.