The devil in the detail 95
We’ve had a closer look at the Institute for Fiscal Studies report from this week.
Basically, the conclusion of the report is that if an independent Scotland continued to do exactly the same things over the next 50 years as the UK does now, it would have to grow its GDP by 1.9% to cover a predicted fiscal gap, while the UK would only have to grow by 0.8% to cover a similar gap. According to the IFS, this 1.9% shortfall would mean a 6% cut in services or a hike of 8% in income tax in an independent Scotland.
However, close reading of the small print in the IFS document highlights facts and forecast figures that appear to contradict the IFS’s argument and instead point to a situation where an independent Scotland would actually be in a similar fiscal position to the UK. Confused? Yes, so were we.
