Norway’s oil revenues amount to almost a quarter of the country’s total income and it is more dependent on oil than Scotland is. Yet no-one is suggesting a bleak future for Norway.
Currently oil revenues account for around one sixth of Scotland’s total revenues and this figure is matched by income tax, National Insurance contributions and VAT revenues, all of which are broadly in line with UK levels.
This is augmented by all the other normal duties and taxes.
On the expenditure side, £1 billion could be saved from the population share of UK defence costs attributed to Scotland under the latest GERS figures.
Even if the Office for Budget Responsibility’s very pessimistic estimates of future oil revenues were to come to pass, we would still be financially better off with independence when compared with remaining as part of the UK.