The report in brief

• Independence modelled on increasing “population, participation and productivity”

• A GDP increase from 1.1% in 2017 to 2.5% within a decade, then 3.5%

• Such levels would increase annual tax take by £9bn, with a £4,100 per person boost to economy

Scotland to use sterling for a “possibly extended transition period” and a Scottish currency only pursued if six tests are met

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• Borrowing to be kept low to ensure credibility and public debt no more than50%ofgdp

• Aim to save £1bn from UK spending programmes from comprehensive spending review, not including defence

• Spending increases less than GDP growth in real terms to bring deficit below 3%

• £5bn “annual solidarity payment” to be paid to rest of UK to cover share of debt

• Income tax relief for skilled workers to make Scotland most welcoming country in world for immigrants

• Corporation tax will not be increased above UK level, but no low tax economy

• £90m per year for five years set-up costs including central bank, intelligence agency, defence force

• North Sea revenues assumed to be zero, with Fund for Future Generations

• Securing frictionless borders with RUK and EU a “top strategic priority”

• Doubling exports to 40% of GDP a “reasonable target” At one level, the economic case for independence is rather straightforward. Economic growth in Scotland has been 0.5-1% slower than in the rest of the UK (RUK) for 30 years or more.

Business investment runs at about half the rate, per unit produced, of that in RUK.

To compensate, Scots work harder than their counterparts in RUK (labour productivity is higher but the overall productivity level remains lower.

In fact, ruk-owned firms spend 1/20th on R&D of that spent in RUK.

That reduces the investment and innovations spending which could create the gains in productivity that would allow Scotland to become more competitive independently of England.

At the same time the UK economy has become weaker. Growth is slowing down. The burden of public debt has worsened.

The UK trade deficit is growing, which means more of the country’s assets have to be sold off to pay for that deficit, and RUK productivity has actually shrunk to below the level of 2007. It is now at only 90% of the EU level. Who would not want to break free of that?

This explains a lot about the UK’S weakening performance.

On the budget deficit, there have always been deep concerns about subsidies flowing north, but few about those flowing south.

North Sea oil production costs have halved since 2013, development costs have fallen by a factor of three, while output is up 20% and prices up 60%.

Yet the tax revenues appear not to increase.

Other “hidden” subsidies include inflated interest payments on the perceived Scottish share of public debt, taxes paid by commuters who work in the south, housing and pension subsidies created by a uniform system based on English conditions.

Independence would rectify these imbalances, offset the loss of UK subsidies, and lower the budget deficit to that which reflects the revenues actually raised and spent in Scotland.