The SNP budget for Scotland - a comment

The purpose of the note is to set out an assessment of the recently published SNP Budget programme, 'Yes We Can', SNP (1997). This paper will critically examine the programme's set of assumptions and reassess the costs of separation within the framework employed by the SNP. Section 2 examines whether there will be gains from independence and re-estimates the SNP budget. In addition, we comment on the SNP view that Scotland has contributed £27bn to the UK exchequer since 1979. Section 3 assesses the view that mere will be increased growth following independence. This is not the position that most economists would hold and the figures are reworked on the still optimistic basis that separation would be neutral with respect to economic activity. Section 4 provides an overview and sets out our conclusions.