IFS warns over trade barriers and austerity

The SNP’S independence blueprint has made no allowance for the negative impact of trade barriers between an independent Scotland and the UK, a leading think-tank has said.

A report by the Institute of Fiscal Studies (IFS) also warns Andrew Wilson’s Growth Commission would result in at least a decade of public spending restraint and public services cuts.

The IFS official “observation” of the SNP’S 354-page document challenges Nicola Sturgeon’s assertion that her party’s independence plans would not bring austerity.

IFS associate director David Phillips said if Scotland left the UK and rejoined the EU, that could mean additional trade barriers between Scotland and the rest of the UK.

He added that Scotland trades four times as much with the EU.

“The commission’s figures make no allowance for any negative economic impact from such barriers,” the document said.

Spending on public services and benefits would fall by about 4 per cent of GDP over a decade, the IFS said.

The commission’s plans for a spending increase of 0.5 per cent would “likely require cuts” to many public services.