The Press and Journal (Aberdeen and Aberdeenshire)

Who to trust with Scotland’s money

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As a political conspiracy, it does not come much better, or worse: secret Government papers from 1984, which have just been made public, reveal a plot involving prime minister Margaret Thatcher and senior ministers to siphon off cash from Scotland’s budget.

They were also discussing ways to cover their tracks so that no one found out. The plotters were even fearful of instigatin­g an official study on the subject due to an inevitable backlash – particular­ly at a time when there were controvers­ial industrial blows to Scotland.

Offshore oil was revealed as a key element of the collusion: Mrs Thatcher sanctioned an “invisible” raid on Scotland’s budget because it was perceived as doing well from oil and “over provision” of government funds.

The timing of the revelation­s, as the independen­ce referendum campaign starts to accelerate, will propel it onto centre stage. It is meat and drink to the SNP and pro-independen­ce supporters, who present it as evidence that a Tory-led government cannot be trusted with Scotland’s money.

Scotland’s budget settlement has always been one of the most controvers­ial cross-border issues.

Many will be indignant, naturally, but perhaps not surprised, given the period.

Whether or not this could happen today is a moot point. The effects of extensive devolution in Scotland, the Scottish influence in the Cabinet and a perception of greater political transparen­cy, comparativ­ely, would suggest not, in theory, especially as Scottish matters have become very politicall­y sensitive in recent years.

What we can say, however, is how tempting the oil and gas industry must look to cash-strapped government­s – whoever is running Scotland.

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