Yousaf denies ‘fantasy’ claim on independence economics
HUMZA YOUSAF has denied indulging in “fantasy economics” after facing mockery about his claim that Scottish independence would lead to households being £10,200 better off.
The First Minister claimed the figure would be the “huge prize of independence” if Scotland could reach the average income of small countries such as Norway and Denmark.
In a speech at Glasgow University, he insisted he was not arguing “there will be rivers of milk and honey and the manna will fall from the sky” the day after independence. Pressed that it was “fantasy economics”, he said the £10,200 was based on a report by the Resolution Foundation think tank claiming that the average household would be £8,300 better off if the UK had the average income inequality of similar countries.
He called the UK the “poor man of north-west Europe” as he set out his views on industrial policy in an independent Scotland.
But Craig Hoy, the Scottish Tory chairman, said: “This delusional speech reaffirmed how out of touch Humza Yousaf is with the Scottish people, who are sick and tired of him obsessing over independence.
“The First Minister’s case for ripping Scotland out of the UK rests on myths, fantasy economics and the fanciful hope the public forget that last month’s disastrous tax-and-axe budget was the product of years of waste and dismal growth under the SNP.”
Scottish Government figures show tax revenue per person in Scotland was £696 higher than the UK average in 2022-23 as a result of North Sea oil and gas, but public spending was £2,217 per person more thanks to the Barnett formula.
Combining the differences in the spending and revenue figures, Scotland’s “Union dividend” was £1,521 per person. However, this would disappear after independence.
He unveiled a three-point industrial strategy for an independent Scotland, the first of which was joining the EU.
However, experts have warned this would mean creating a hard border with the rest of the UK, which is by far Scotland’s largest export market.