Taxpayer Scotland, which is linked to the London-based Taxpayers\’ Alliance organisation, estimates Scotland\’s debt could be as high as £189bn, even before taking into account its share of the national debt.
Adding in Scotland\’s £80bn share of the UK\’s £940bn national debt suggests it might face a £269bn burden, costing more than £10bn in annual interest payments.
What the actual debt burden would be would be a matter for negotiation, of course. But that\’s not actually the problem.
The Barnett formula hands 10p of every £1 the Government distributes to Scotland. To replace this money at present would require Scotland to borrow £7.5bn every year and Taxpayer Scotland says the country\’s annual deficit would be \”much nearer\” to 30pc of GDP than the 15pc calculated by the latest Government Expenditure and Revenue Scotland report.
\”Clearly, the present Keynesian overspend in response to the \’credit crunch\’ downturn is unsustainable, but even our normal year overspend of between 10pc and 15pc (depending on how you view the Barnett subsidy) is above the OECD average and, in our view, unsustainable,\” said the report.
They\’re running a 30 % of GDP deficit? And a structural one of 10-15%?
So, either austerity of Greek scales of heroic endeavour or they go bust in a decade.
All of which means that we English should kick them out as fast as we can. For it\’s our pockets they are currently draining, no?