Alexander and Swinney clash on Scots finances

30 Apr 14
Finance ministers from London and Edinburgh have crossed swords over the potential revenues and assets of an independent Scotland.

By Keith Aitken in Edinburgh | 30 April 2014

Finance ministers from London and Edinburgh have crossed swords over the potential revenues and assets of an independent Scotland.

Danny Alexander, the UK chief secretary to the Treasury, on a visit to the Scottish capital today, urged the Scottish Government to revise its independence white paper to take account of recent downbeat projections of oil revenues by the Office for Budget Responsibility.

But, pre-empting Alexander’s visit, Scottish Finance Secretary John Swinney called on the Treasury to publish the share of UK public assets – including those located elsewhere in the UK – to which Scotland would be entitled if it voted for independence in the referendum on 18 September.

Alexander’s visit presaged a new Treasury statistical analysis of the economics of independence, the latest in a series of Whitehall interventions in the independence debate.

‘The Scottish Government must confront the fact that it is promising tax revenues and public spending that it cannot deliver,’ he said.

‘It should revise its oil and gas forecasts or, better yet, follow international best practice and follow an independent forecast like the OBR’s.

‘It is time for the Scottish Government to confirm what we all know: that the white paper was wrong, to correct the discredited [Scottish Government] Oil & Gas Bulletin and the errors at the heart of the white paper.’

Alexander also dismissed as ‘fantastical’ the white paper’s claim to a share of access to UK institutions and services, which he said was unprecedented anywhere in the world.

But Swinney struck back, demanding a detailed assessment from the Treasury of Scotland’s due share in assets built up jointly over the 300 years of the union. He said that this figure would have to be offset in any independence negotiations against Scotland’s share of UK public debt.

‘We note with interest preliminary analysis by academics suggesting that on defence alone Scotland may be entitled to draw upon a notional sum of nearly £5bn for physical assets located elsewhere,’ Swinney said.

‘Scotland's share of UK assets will be realised in a combination of ways – through physical assets, cash transfer and continued use of assets through shared service agreements,’ he added.

‘To have a shred of credibility, any Westminster analysis should also set out in detail the assets that will be due to Scotland in the event of a vote for independence in September.

‘As part its campaign rhetoric we know the UK government talks about Scotland’s share of the debt run up by successive Westminster chancellors,’ Swinney said.

‘It cannot be taken seriously if does not also talk about Scotland's share of assets.’


 

Spacer

CIPFA logo

PF Jobsite logo

Did you enjoy this article?

AddToAny

Top