As the SNP prepare for a non-binding vote on leaving the UK next year – they have also put in a demand for another £98,000 million from the UK Treasury to fund regional business recovery.
Before going any further lets just have a basic fact check to put things in context.
Scotland has a population of 5.4 million – exactly the same as Yorkshire. So that extra £98,000 million equates to £18,148 more for every adult and child in Scotland. A huge amount that has to be paid by us all out of UK-wide taxation. Note that this is in addition to a range of other benefits, some unique to Scotland, that are paid out of UK-wide contributions.
For those Grandads with grandchildren hoping to get to university – it is only those families resident in Scotland that will get their tertiary education for free. The tens of thousands paid out or borrowed by students in England will – in Scotland – be funded by … UK-wide taxation.
And for anyone who currently has to pay for prescription medicines the fact that Scotland uses tax income from the UK to give them out for free does not go down well.
This generosity is sometimes claimed to be justified because Scotland’s tax payers pay more than in the rest of the UK. But this claim is clearly shown to be false because the scale of the benefits received is far higher than any marginal tax variations.
Take the example of the BBC. The 2.5 million households in Scotland are able to receive not just additional national programs but also have a dedicated channel – BBC Alba. The fact that BBC Alba often has tiny audiences does not matter since the TV Licence payments that fund it are UK wide. So no need to live within their income limits.
Meanwhile in England the regional content for our same-sized example – Yorkshire – is being cutback from a level that was already well below that of the Scottish services. A situation repeated in local government. With Scotland having a very expensive modern parliament building and a full house of MSPs plus their support staff while poor relation Yorkshire has to make do with a few elected mayors, no building and minimal funding.
Just to add icing to the cake it was announced yesterday that Scotland has become the only country in the world to provide free and universal access to period products. It is estimated to cost about £8.7m a year and will not be means-tested. Not a big cost – if accurate – but then it’s just one more little extra for the tax-payers to fund.
The budget estimates for any newly independent Scotland are going to need to be very creative to cover all of this expenditure with no more than 2.5 million households to tax ..
Update 30-Nov-2020 Untroubled by having to worry where the money will come from the SNP have agreed to fund free breakfasts and lunches for all primary school children – all year round. [Who needs parents?] And because the UK Government intends to reduce overseas aid the SNP have increased theirs by £2 million – despite still not having overseas aid as a devolved power. But their big idea for a golden future is for everyone in Scotland to move to a four-day working week while keeping their full five-day pay. So that’s 100% pay for 80% work … An interesting approach that has its advocates and lobby groups – to quote one of them One day in the future, hopefully soon, when the full-time working week is four days or less we’re going to look back on this period and think what on earth were we doing. Too true – but for quite a different reason…