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Budget 2014: Fall in oil revenue underlines 'precarious' nature of an independent Scotland’s finances, says Chancellor | |
(about 9 hours later) | |
A steep drop in the expected tax receipts from North Sea oil and gas fields underlined the “precarious” nature of an independent Scotland’s finances, George Osborne said. | A steep drop in the expected tax receipts from North Sea oil and gas fields underlined the “precarious” nature of an independent Scotland’s finances, George Osborne said. |
In his last Budget before September’s referendum, the Chancellor told MPs that revenues from oil and gas production were forecast to decline by almost 50 per cent in four years. | In his last Budget before September’s referendum, the Chancellor told MPs that revenues from oil and gas production were forecast to decline by almost 50 per cent in four years. |
He pointed to revised projections from the Office for Budget Responsibility suggesting receipts will fall from £6.1bn in 2012-13 to £3.2bn in 2016-17, the first year in which Alex Salmond hopes Scotland will be independent. | He pointed to revised projections from the Office for Budget Responsibility suggesting receipts will fall from £6.1bn in 2012-13 to £3.2bn in 2016-17, the first year in which Alex Salmond hopes Scotland will be independent. |
Mr Osborne said: “The Scottish economy is doing well and jobs are being created, but this is a reminder of how precarious the budget of an independent Scotland would be. | Mr Osborne said: “The Scottish economy is doing well and jobs are being created, but this is a reminder of how precarious the budget of an independent Scotland would be. |
“These further downgrades in the tax receipts would leave independent Scots with a shortfall of £1,000 per person - Britain is better together.” | “These further downgrades in the tax receipts would leave independent Scots with a shortfall of £1,000 per person - Britain is better together.” |
The OBR calculations will be exploited by pro-Union campaigners as evidence of a “black hole” in the Scottish government’s economic plans. The Scottish Secretary, Alistair Carmichael, claimed that independence would be a gamble between a “place in a UK that is working well” and “go-it-alone option with no UK pound and falling oil revenues”. | The OBR calculations will be exploited by pro-Union campaigners as evidence of a “black hole” in the Scottish government’s economic plans. The Scottish Secretary, Alistair Carmichael, claimed that independence would be a gamble between a “place in a UK that is working well” and “go-it-alone option with no UK pound and falling oil revenues”. |
But John Swinney, the Scottish Finance Secretary, pointed to a report last month which urged the exploitation of large reservoirs of untapped oil. He said: “Increased investment in the North Sea will lead to increased production with a further 24 billion barrels of oil still to come from the North Sea.” | But John Swinney, the Scottish Finance Secretary, pointed to a report last month which urged the exploitation of large reservoirs of untapped oil. He said: “Increased investment in the North Sea will lead to increased production with a further 24 billion barrels of oil still to come from the North Sea.” |
Mr Swinney added: “This was Westminster's last chance to show it could create opportunity for Scotland and reject the diet of austerity. Once again Westminster has failed to deliver for Scotland. | Mr Swinney added: “This was Westminster's last chance to show it could create opportunity for Scotland and reject the diet of austerity. Once again Westminster has failed to deliver for Scotland. |
“This Budget confirms a further squeeze on public spending and a further austerity plan.” | “This Budget confirms a further squeeze on public spending and a further austerity plan.” |
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