Scottish independence: New claims on economic outcome
Scottish independence: New claims on economic outcome
(about 1 hour later)
Contrasting claims about the costs and benefits of Scottish independence are to be put to voters.
Competing claims about the costs and benefits of Scottish independence have been set out to voters.
The Scottish government will argue that independence could bring about an economic bonus for each household.
The Scottish government said an independent Scotland would start out with "strong" finances, and could be £5bn a year better off by 2029-30.
The UK government will say that keeping the Union will ensure a dividend for everyone in Scotland.
UK ministers said Scotland would be better off staying within the UK by about £1,400 per person per year.
Treasury ministers are preparing to publish their costing of the White Paper plans for independence.
The two sides set out their cases ahead of the independence referendum, on 18 September.
The challenges it has identified for an independent Scotland include an ageing population, declining oil revenues and the potential for higher interest rates.
A new Scottish government paper said Scotland's finances in 2016-17 would be similar to, or stronger than, both the UK and the G7 industrialised countries as a whole.
The Treasury analysis will be published by Chief Secretary to the Treasury Danny Alexander.
The paper added that debt would be on a "downward trajectory", enabling future Scottish governments to start an oil savings fund.
Mr Alexander told the BBC's Scotland 2014 programme: "One of the frustrations here is that the nationalist government has not set out any costs at all of setting up a new state - they seem to assume it's free.
Scottish 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 wealth properly benefits everyone in our society.
"Just like they seem to assume that you can get all the oil out of the North Sea for free, just as they seem to think that they can get away with trying to bamboozle people to vote for independence on the basis of numbers that simply don't add up - on oil revenues, on set-up costs, on tax and on spending."
"That wealth means we will start life as an independent nation with strong finances and huge economic potential.
The Scottish government has rejected the view that the costs of independence are greater than the benefits.
"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."
'Benefits of wealth'
Meanwhile, Chief Secretary to the Treasury Danny Alexander published a paper outlining what the UK government sees as challenges to an independent Scotland, including an ageing population, declining oil revenues and the potential for higher interest rates.
First Minister Alex Salmond said: "The reality is 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."
Speaking in Edinburgh, Mr Alexander said: "Today we have shown that, by staying together, Scotland's future will be safer, with stronger finances and a more progressive society.
The Scotland Office has said the paper will show "there is a significant benefit for each and every Scottish man, woman and child as part of the union".
"Because as a United Kingdom we can pool resources and share risks. It means a UK dividend of £1,400 a year for every man, woman and child in Scotland.
The Scottish government has claimed that the Treasury calculations rest on a misinterpretation of research carried out by the London School of Economics (LSE).
"That dividend is our share of a more prosperous future. It is the money that will pay for better public services and a fairer society."
LSE academic Patrick Dunleavy posted on his Twitter account: "UK Treasury press release on #Scotland costs of government badly misrepresents LSE research."
Mr Salmond added: "This is a devastating verdict on the Treasury's figures from one of the authors of the report they have been using to base their work on.
"And it totally undermines everything they have to say this week about the finances of an independent Scotland."
Mr Alexander said the figures on start-up costs were based on research by Professor Robert Young from Canada.
UK assets
The Scotland Office has questioned claims from the Scottish government that an independent Scotland would be entitled to a share of UK assets.
A spokesman said: "John Swinney now seems to have reduced his independence dream to an episode of Cash in the Attic.
"His financial plan for independence now hinges on how much he might be able to get for 'Scotland's share' of the UK Embassy in Tokyo or the new HMS Queen Elizabeth aircraft carrier.
"In private, Mr Swinney told his Cabinet colleagues that it would cost £600m a year for an independent Scotland to set up one government department to collect tax. He should now tell everyone in Scotland what the total bill for independence would be."
