Financial Times FT.com

Scotland’s tough choices

By Chris Giles, Economics Editor

Published: April 24 2007 22:16 | Last updated: April 24 2007 23:13

An independent Scotland would have to choose between raising taxes and cutting public spending within a decade, as oil revenues dwindle alongside production in the North Sea.

A Financial Times analysis shows that the current high level of oil prices would allow Scotland to declare independence from the rest of the UK without having to cut public spending. In 2007-08 the nation would have lower government borrowing than the UK.

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