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Wednesday, November 29, 2023

Rejoining EU would not make up for cost to Scottish economy of leaving UK, says report

A report from London School of Economics and City University of Hong Kong has suggested Scottish independence would shrink the country’s economy by more than $3,750 per person.

The report, Disunited Kingdom? Brexit, Trade and Scottish independence, says independence would cost the Scottish economy $14.7 billion a year.

The authors said independence could be three times as costly as leaving the European Union, which the governing Scottish Nationalist Party (SNP) opposed.

According to Fiona Hyslop, Scotland’s economy secretary: “There is no reason whatsoever that Scotland could not emulate the success of independent countries of our size, which are far wealthier per head than the UK.”

The SNP argues that Scotland has comparable strengths with other similar-sized countries and that its strengths in the energy, financial services and tourism sectors will help it thrive alone. The country is rich in natural resources.

The party believes low global interest rates would help Scotland borrow to fund deficits, while its plan to retain use of sterling would reduce risk.

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