Common Weal analysis of GERS 2016-2017 reveals economic opportunities of independence

Stephen Richard — Mon, 06 Sep 2021 17:04:00 +0000

Primary Author or Creator

Craig Dalzell

Stephen Richard Mon, 09/06/2021 - 18:04

Additional Author(s) / Creators

Common Weal

Date Published

Fri, 08/11/2017 - 12:00

Category

Economy

Type of Resource

Assessment report

Fast Facts

The Common Weal Think-tank analysis of GERS 2017 reveals the economic opportunities of Scottish independence

Modest estimates by Common Weal show that an independent Scotland could be better off to the tune of at least £7.5 billion in comparison to the figures in the GERS paper published today effectively cutting the deficit by over half.

As the GERS paper mentioned on several occasions the statistics are estimation of the financial management of the Scottish economy as a region within the United Kingdom, where most of the economic power currently lies. Common Weal calculates that the very act of Scottish Independence would boost tax revenue by at least £7.5 billion per year.

More details

― The UK is a deeply unequal union and London continues to capture a greater and greater proportion of the wealthy of the state to the detriment of everywhere else.

― Scotland’s offshore economy continues to shrink even whilst onshore tax revenue has risen slightly

― However the growth in Scotland’s onshore economy more than offsets this loss.

― Relative low collection of direct tax revenue such as income tax and capital gains taxes remains an indicator of the economic inequalities of the UK.

― Whereas relatively high rates of collection of alcohol and tobacco revenue may be an ongoing indicator of higher stress and lower well-being in Scotland. This should be subject of further study.

― Scotland’s share of the UK’s debt interest payments now stand at £3.25 billion per year; more than the entire transport budget.

― Whilst GERS itself does not illustrate an independent Scotland’s finances, Common Weal has produced metrics which allow it to be estimated.

― The creation of formerly reserved government departments like the civil service, Central Bank and others will create thousands of jobs in Scotland and create more than £1.3 billion in revenue per year.

― Even assuming defence spending is maintained, basing more of it in Scotland would create additional tax revenue of at least £200 million per year.

― An allocation of debt and assets based on historical precedents would save Scotland around £2.5 billion per year in debt interest repayments.

― A more efficient approach to tax and customs would eliminate major flaws in the UK system and could help close the UK’s £120 billion per year tax gap. Even just a third of Scotland’s “share” of this gap would be worth £3.5 billion in revenue.

Resource Address (URL)

https://commonweal.scot/wp-content/uploads/2017/09/COMMON-WEAL-ANALYSIS-OF-GERS…

Keywords

GERS

Scottish statistics

Scottish economic performance

Language English