Cost of independence

How to pay for becoming independent

Stephen Richard — Thu, 28 Oct 2021 13:51:53 +0000

How to pay for becoming independent Stephen Richard Thu, 10/28/2021 - 14:51

Author or Creator

Common Weal

How much will becoming independent cost in total?

If you make sensible estimates of all the costs involved of becoming independent the total comes to about £25 billion pounds.

Isn't that a lot of money?

Well about £15 billion of that will be inherited from the UK in Scotland's share of UK assets so the real additional cost is in the order of £10 billion and obviously that is a one-off cost. It really isn't that much money when it comes to the budget of a nation state – for example, it is less than a fifth of what would have been Scotland's share of the 2008 bank bailout which was spent in one year.

How do we pay for it?

When the National Commission is set up it should be given the power to issue bonds to international investors with the guarantee that the value of these bonds will be transferred to and therefore assured by the government of Scotland once it is independent. This can then be used to pay for the costs of the tasks needed and simply added to Scotland's national debt at the end of the process.

What do we get for the money?

Well, apart from a properly-established country we get a foreign currency reserve of £25 billion pounds which can be invested and used in an emergency. And we would also get spending of at least a third of the money in the Scottish economy – that's a £3 billion boost to the Scottish economy in the early days of independence.

Keywords

Cost of independence

Scottish Debt

What is the financial impact on Scotland of independence?

Stephen Richard — Thu, 28 Oct 2021 11:14:09 +0000

What is the financial impact on Scotland of independence? Stephen Richard Thu, 10/28/2021 - 12:14

Author or Creator

Common Weal

What is the financial impact on Scotland of independence?

There are three aspects to this – the initial debts inherited, the cost of the work to become independent and the ongoing financial position of Scotland after independence. The last of these is not part of the process of establishing a new country and so has not been considered here.

So what is the debt aspect of this?

As was discussed under negotiations above, that is not something we can know until negotiations are complete, but there isn't really a scenario where Scotland's debt liability is any higher than it already is inside the UK and there are a number of scenarios where it could be less – and even significantly less. As we have seen through two periods of very large scale 'quantitative easing' right across Europe and indeed the wider world, debt size in comparison to the size of the economy when you are in charge of your own currency is not a major concern. The issue is the cost of servicing it which will not be higher than it currently is for Scotland.

But these questions reveal a lot of set-up costs do they not?

Yes, but this should be put into perspective. If you add up all of the above costs then the total comes to about £25 billion and this is not particularly large when we think about the bank bailout or the emergency Covid measures. And it is dominated by two major costs – the cost of setting up a Foreign Currency Reserve and cost of setting up a Scottish Defence Force. The first of these is a cost but it is also an asset (this is real money you can spend and invest) and the second would be spent over a decade and much of it would come from annual spending on defence which would actually be less than what we are spending at the moment as part of the UK. These are all one-off costs and in the end are no more than a small proportion of how much Scotland's share of the bank bailout cost.

So that is how much the national debt would rise by to become independent?

No, that is the total cost of the set-up and doesn't include Scotland's likely share of the UK's assets. About £15 billion of the £25 billion total would come to Scotland as a share of assets (or would be subtracted from debt). The additional cost to Scotland which would be borrowed is only £10 billion which, as a one-off, really isn't that substantial.

How would we pay for it?

To go back to the beginning, the National Commission would be given bond-issuing powers so would use this to borrow the money as it does its work. At the end this would be consolidated and added to the national debt.

What do we get for our money?

Well, our own country – and a giant economic stimulus. An awful lot of the money it would cost to set Scotland up as an independent country would be spent on goods, services and wages inside Scotland would would help to boost Scotland's economy.

Keywords

Cost of independence

Public Debt

Government bonds

The costs of independence and the work required to set up new governing systems

Stephen Richard — Tue, 26 Oct 2021 14:24:21 +0000

The costs of independence and the work required to set up new governing systems Stephen Richard Tue, 10/26/2021 - 15:24

Author or Creator

Common Weal

What are the cost implications of independence for Scotland?

All of this being the case, what is the financial impact on Scotland of independence?

So what is the debt aspect of this?

But these questions reveal a lot of set-up costs do they not?

So that is how much the national debt would rise by to become independent?

How would we pay for it?

What do we get for our money?

And then?

What happens after all of this set-up is done?

Whatever we want. Then we will be a normal nation, nation number 196 – just like the other 195. The citizens of Scotland will vote for governments and whatever government we vote for will steer the nation until the next election. The possibilities are limited only by what we demand of our governments and we will have no-one else to blame for our decisions. In other words, we will be independent.

Keywords

Scottish Government

Cost of independence

Funding Scottish independence

Stephen Richard — Mon, 18 Oct 2021 20:56:52 +0000

Funding Scottish independence Stephen Richard Mon, 10/18/2021 - 21:56

Author or Creator

Common Weal

There are three elements to the answer:

Initial debts
work to become independend
Continuing financial position

Initial debts will be a matter of negotiation with the UK government. The set up costs are estimated at £25 billion of which £15 billion as a share of assets being transferred. The continuing financial position is dependent on the strength of the economy.

Sources and Links

https://sil.e-infinitum.com/independence/what-are-the-cost-implications-of-sett…

Keywords

Cost of independence

Scottish Debt

Can Scotland afford independence?

Stephen Richard — Fri, 15 Oct 2021 07:25:03 +0000

Can Scotland afford independence? Stephen Richard Fri, 10/15/2021 - 08:25

Author or Creator

Stephen Richard

Keywords

Cost of independence

What are the cost implications of setting up an independent Scotland?

Stephen Richard — Mon, 18 Oct 2021 21:11:08 +0000

What are the cost implications of setting up an independent Scotland?

Primary Author or Creator

Common Weal

Stephen Richard Mon, 10/18/2021 - 22:11

Alternative Published Date

2021

Category

Independence

Type of Resource

Briefing paper

Length (Pages, words, minutes etc...)

1pp

Fast Facts

Initial debts will be a matter of negotiation with the UK government. The set up costs are estimated at £25 billion of which £15 billion will be offset as a share of assets being transferred.

More details

What is the financial impact on Scotland of independence?

So what is the debt aspect of this?

But these questions reveal a lot of set-up costs do they not?

So that is how much the national debt would rise by to become independent?

How would we pay for it?

What do we get for our money?

And then?

What happens after all of this set-up is done?

Keywords

Cost of independence

Scottish Debt

Language English

Scottish independence would be 2-3 times more costly than Brexit, and rejoining the EU won’t make up the difference

Stephen Richard — Tue, 05 Oct 2021 15:22:19 +0000

Scottish independence would be 2-3 times more costly than Brexit, and rejoining the EU won’t make up the difference

Primary Author or Creator

Hanwei Huang

Stephen Richard Tue, 10/05/2021 - 16:22

Additional Author(s) / Creators

Thomas Sampson, Patrick Schneider

Date Published

Fri, 04/02/2021 - 12:00

Category

Independence

Type of Resource

Blog

Length (Pages, words, minutes etc...)

5pp

Fast Facts

Scottish independence would be 2-3 times more costly than Brexit over 15 years. Rejoining the EU wwll make up part of the difference in trade value. This made headline news for a time. The methodology has been questioned.

Resource Address (URL)

http://eprints.lse.ac.uk/109030/1/brexit_2021_02_04_indyref2_scottish_independe…

Keywords

independence

Cost of independence

Brexit

Language English

SCOTLAND THE BRAVE? AN OVERVIEW OF THE IMPACT OF SCOTTISH INDEPENDENCE ON BUSINESS

Stephen Richard — Mon, 04 Oct 2021 18:11:19 +0000

SCOTLAND THE BRAVE? AN OVERVIEW OF THE IMPACT OF SCOTTISH INDEPENDENCE ON BUSINESS

Primary Author or Creator

Clifford Chance

Stephen Richard Mon, 10/04/2021 - 19:11

Alternative Published Date

July 2021

Category

Independence

Length (Pages, words, minutes etc...)

18pp

Fast Facts

The practical issues that arise on separating Scotland from rUK cannot be underestimated, despite the existence of a Scottish Government since devolution. Everything run on a UK-wide basis must be split. Laws that are in force in Scotland and in rUK on independence day will continue in force, but both countries need to look at their statute books in order to ensure that they meet the requirements of each country's new or revised form

Resource Address (URL)

https://www.cliffordchance.com/content/dam/cliffordchance/briefings/2021/07/sco…

Keywords

Independence issues

Cost of independence

Business

Language English

How To Start a New Country & A Short Guide To Starting a New Country

Stephen Richard — Wed, 18 Aug 2021 22:26:48 +0000

How To Start a New Country & A Short Guide To Starting a New Country

Primary Author or Creator

Common Weal

Stephen Richard Wed, 08/18/2021 - 23:26

Alternative Published Date

August 2021

Category

Scottish government

Type of Resource

Policy Paper

Fast Facts

Both books are essential reading for both believers in Scottish independence and undecided voters who seek answers to their practical questions about the processes required for starting an independent country.

More details

Common Weal is proud to present the end result of 18 months of work on the White Paper Project: a blueprint for how to start an independent Scotland, together with a short guide to starting a new nation, arming the independence movement with the most important piece of work completed since the 2014 referendum.

The purpose of this work is to explore the practical steps that Scotland would have to take if it wanted to become an independent country. The book’s starting point is the day after the referendum at which a majority of Scotland have voted for independence and it ends three years later with Independence Day.

Based predominantly on Common Weal’s 18 month long White Paper Project, the book explores how Scotland would build its new systems and infrastructure, how it would pay for it all and how much it would cost.

An independent Scotland should aim to establish itself as a 21st century nation. It is an excellent opportunity to design the country not as an adaptation of the 19th century nation but as one which is rooted in modernity.

Resource Address (URL)

https://commonweal.scot/shop/package-deal-two-books-how-to-start-a-new-country-…

Keywords

Scottish Independence

Foreign Currency Reserves

Civil Service

Council of Europe