The Scotsman cartoon: Full fiscal autonomy

SCOTLAND’s public finances would face a £5 billion shortfall if full fiscal autonomy was handed to Holyrood, a think tank has warned.
Illustration: Iain GreenIllustration: Iain Green
Illustration: Iain Green

Ahead of the first meeting of a commission set up to deliver an enhanced package of devolution, Fiscal Affairs Scotland said the UK’s North Sea oil and gas revenues, £1.1 billion for the first half of 2014-15, would not be enough to make up for the loss of the Barnett Formula.

The system has led to public spending per head being typically 20 per cent higher in Scotland than in England and would be removed in the event of full financial powers being devolved.

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