RECAP: Nicola Sturgeon sets out economic argument for independent Scotland | Jeremy Hunt reverses almost all tax measures from mini budget
The update on Scottish independence will come an hour after Jeremy Hunt reversed almost all tax measures from the mini budget that saw Kwasi Kwarteng sacked and Liz Truss threatened early on in her premiership.
The Chancellor Jeremy Hunt has announced the Government will scrap plans to reduce the basic rate of income tax from 20% to 19% in April next year, a move that had been forecast would cost the Exchequer almost £5.3 billion in 2023-24.
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Hide AdThe First Minister will publish new independence prospectus paper at a press conference at midday to launch the third paper in the Building a New Scotland series, designed to inform the debate on Scotland’s future. ‘Building a New Scotland: A stronger economy with independence’ will set out the Scottish Government’s economic proposals for an independent Scotland.
The First Minister will take questions on the paper at a press conference an hour after Jeremy Hunt has given an update on the mini budget in an attempt to quell the markets. The Treasury said Mr Hunt will issue an emergency statement at 11am on Monday to rush forward measures that had been due to be announced on October 31 in what is known as the medium-term fiscal plan.
He will then address MPs in a statement to the House Of Commons later in the afternoon.
You can follow live updates in our live blog, that will be running throughout the day.
Nicola Sturgeon to launch third independence paper outlining economic argument for leaving UK | Jeremy Hunt set to make emergency statement on mini-budget
The First Minister is setting out to answer a number of questions that those opposed to independence may have.
“I know, however, that there are many people who, even though they agree with that analysis, still have big - and fair - questions about independence. Questions like - Why now, in these tough times?
What currency will we use? How will we deal with any debt and deficit we inherit? How can we protect trade across the UK if we are back in the EU? This paper addresses these questions.”
Nicola Sturgeon asks: “ We know that for other independent countries of our size, or smaller, independence already works. Why would it not for Scotland?“
The FIrst Minister says that “with independence, we can re-join the EU and be back inside the world’s biggest trading block.”
She adds: “As an EU member state in our own right we would, for the first time, be in a position not just to benefit from EU trade deals, but help shape them. We would have an immigration policy tailored to our needs.”
The First Minister also confirms that the plans would involve Scotland creating the Scottish pound.
“We confirm that the policy of the Scottish Government is to establish a Scottish pound. We would seek to do this as soon as practicable.”
Scotland will remain in the Common Travel Area with the rest of the UK and Ireland. That means any talk of passports to visit relatives in England is utter nonsense.”
Nicola Sturgeon added: “Free movement of people across our islands will continue as before. An independent Scotland back in the EU will also regain free movement across 27 other countries too.”
The wrong path to follow surmises Nicola Sturgeon, She says: “The UK economy is fundamentally on the wrong path For Scotland not being independent means we are being dragged down the wrong path too, a path people here did not vote for. To build a more stable sustainable economy, with fairness and human wellbeing at its heart, independence is essential.”
Nicola Sturgeon adds that while this is not an easy decision - the reality is that remaining in the UK means more austerity as outlined in Jeremy Hunt’s speech today
The entry of an independent Scotland into the EU would not be a “particularly lengthy process”.
Taking questions from journalists about the launch of her new prospectus paper on Scottish independence, Nicola Sturgeon said: “Nobody with any credibility seriously suggests that Scotland would not be welcomed back into the European Union.
“And while there would be a process of negotiation, most people who know what they’re talking about on this issue are very clear that that would not be a particularly lengthy process.”
It was put to the First Minister that Scotland’s gap between public spending and tax revenue was higher than the UK average.
Asked if the first years of an independent Scotland would require tax rises, spending cuts and borrowing, she said: “Most governments in developed countries borrow all the time for investment and also to cover gaps in between the revenues and expenditure.”
Ms Sturgeon repeated that it was not possible to estimate an independent Scotland’s opening fiscal position, but added she may be able to update on this in the months to come.
Downing Street said Liz Truss did not believe it was the moment to consider another referendum on independence.
The Prime Minister’s official spokesman said: “People in Scotland want their governments to be focused on the issues that matter to them, things like energy security, the cost of living and obviously supporting Ukraine in their war against Russia.
“So the Prime Minister remains of the view it is not the time to be talking about another independence referendum.”