Ignoring the facts of fiscal autonomy

Yet another leading Yes campaigner (Lesley Riddoch, Perspective, 20 October) has called for “full fiscal autonomy”) as the vehicle by which Scotland can deal with job creation, social justice, economic growth and whatever other economic ills we have.

It is seen as the next best
alternative to independence. It still has not registered there is no such thing as
“fiscal autonomy”; at least there is no such thing as the kind of fiscal autonomy proposed by Yes campaigners.

In any well run and
balanced economy, fiscal and monetary policy
complement each other; they do not compete, which is what is being effectively proposed by those favouring fiscal autonomy.

During the referendum campaign, it was pointed out by any number of serious economists, including the Governor of the Bank of England (“currency union is incompatible with sovereignty”) that a currency union would impose conditions, under which taxation, borrowing and spending plans proposed by any Scottish Government would have to have the agreement of the government of the UK.

After the debacle of the euro, where the taxation and spending policies of the weaker southern European countries were incompatible with those of the other major countries, no UK government would make the same mistake.

It is wrong to continue to suggest that “full fiscal autonomy” can address Scotland’s economic and social problems. Even if such a thing existed, without control of monetary policy it could cause as many problems as it cures. All the talk of holding Westminster’s “feet to the fire” would be better applied to those Scots who voted No.

There is no halfway house, no imaginary control of
taxation, that will allow us to address our economic problems, assuming of course we actually want to.

Jim Fairlie

Heathcote Road

Crieff