Scotland's Economic Independence: Could We Thrive Without Westminster Funding?

In the context of ongoing debates about Scottish independence, a recent report presented in the UK Parliament highlighted potential challenges if Scotland were to become economically independent. This report lists numerous assets that Scotland could leverage to support its economy without the largesse of Westminster. While the list was read out in the UK Parliament without rebuttal, it raises important questions regarding Scotland's economic potential and its historical contributions to the UK.

Scottish Economic Assets

Scotland possesses several significant economic assets that could be harnessed for national benefit. These include:

Offshore Oil and Gas: 65% of UK oil and gas production, with annual exports valued at around ￡10 billion. Maritime Fisheries: 70% of UK fish landings, contributing significantly to the seafood industry. Renewable Energy: Potential for 25% of UK renewable energy and 25-30% of EU tidal resources. Hydropower: 90% of UK hydroelectricity production. Forestry: The production of timber, which is an important asset for both domestic and export markets. Maritime Area: Control over 65% of UK maritime territory, providing substantial economic opportunities. Agriculture and Food: A growing industry, with an annual output of ￡14 billion, encompassing sectors like food, drink, life sciences, computer gaming, forestry, and tourism.

Historical Context and Debts

The historic balance sheet between Scotland and the UK includes significant financial contributions. In 1997, William Waldegrave, the then UK Finance Minister, admitted in the UK Parliament that Scotland had paid into the Exchequer ￡27 billion more than it received. This fact has been documented in Hansard, the official record of the UK Parliament. The admission starkly contradicts the notion that Scotland is dependent on the largesse of England for its survival.

Despite these contributions, Scotland continues to rely heavily on the Unionist argument that it is a 'basket case' needing financial support from Westminster. However, this argument is largely based on false assumptions. The McCrone Report, which detailed Scotland's economic contributions, was intentionally kept secret from the public for over thirty years, indicating a concerted effort to maintain a skewed narrative.

Amid these historical and economic considerations, it is important to note that Scotland has faced numerous challenges, including a slightly older population and a higher tax burden due to a smaller working-age population. Nevertheless, let us consider the example of New Zealand, which has achieved economic success with similar challenges. If New Zealand can manage a similar-sized economy with a comparable level of funding, there is no inherent reason why Scotland could not achieve similar success.

The primary obstacle to Scotland's economic independence would be the assumption of a share of UK debt. The total UK debt is considerably higher than New Zealand's, though Scotland would have to manage this as part of its transition to full independence.

Conclusion

While the path to full economic independence from Westminster may present several challenges, the resources and potential of Scotland's economy suggest a realistic possibility of thriving without the financial largesse of the Union. The historic contributions of Scotland to the UK, coupled with the diverse assets at its disposal, provide a solid foundation for a successful independent Scottish economy.