Slump in oil income means ‘Scots could not go it alone’

‘We’d be staring down the barrel of a gun’

SCOTLAND ‘dodged a bullet’ by rejecting the SNP’s bid for separation as experts insist the country could not operate outside the UK under current budget pressures.

The Fraser of Allander Institute claims Scotland’s net finances are set to ‘be weaker than the UK position going forward’ due to the continued slump of the oil and gas industry.

Academics at the University of Strathclyde think tank predict further financial disappointment north of the Border, saying ministers must set out ‘tough’ financial choices they would make in pursuit of independence.

The warning comes ahead of a Government Expenditure Revenue Scotland (GERS) report on the country’s public finances, which shows the country last year had a deficit of £14.8billion.

The GERS report for 2015-16 shows the country’s deficit was worse than that of Greece or Spain, and that growth was lagging behind the rest of the UK. Although experts believe there will be a slight improvement on last year, they claim it is unlikely the figures ‘will make pretty reading’ due to the continued slump in oil revenue.

Scottish Conservative finance spokesman Murdo Fraser said: ‘If the SNP had its way, Scotland would be a separate country, and staring down the barrel of a gun financially. Any government here would have to hike taxes, slash public services and increase borrowing.

‘We don’t know what the GERs figures will say, but other indicators show Scotland dodged a bullet thanks to the 2014 No vote. With collapsing oil revenues, the whole UK can endure this shock. In contrast, an independent Scotland would have been exposed to it.’

A Scottish Government spokesman said: ‘Oil and gas production has generated £330billion in tax revenues for the UK Exchequer in the last five decades.’