Morning Call: pick of the papers

The ten must-read comment pieces from this morning's papers.

1. Welcome, Mr Carney – Britain needs you (Financial Times)

The next BoE governor must chart a voyage back to something close to normality, writes Martin Wolf.

2. On Leveson, David Cameron's dilemma is that the press can still ruin careers (Guardian)

Coverage of the Leveson inquiry proves why the press must be reformed – but it also shows the risk involved in doing so, says Peter Wilby.

3. Don’t force the press into politicians’ arms (Times) (£)

Newspapers have forfeited the right to self-regulation, but state regulation is dangerous, argues Times editor James Harding.

4. Tories should take on Nigel Farage, not woo him (Independent)

Cameron knows that an electoral pact would be mad, impracticable, and philosophically incoherent, writes Steve Richards.

5. Obama should end his reticence on rights (Financial Times)

The US president would surely like his foreign policy legacy to be about more than success in a war on terror, says Gideon Rachman.

6. Europe's €50bn bung that enriches landowners and kills wildlife (Guardian)

The EU's farm subsidies are a modern equivalent of feudal aid, writes George Monbiot. As Europe suffers under austerity, it's right to call for reform.

7. It has taken the left years, but finally the press is at its mercy (Daily Telegraph)

Whatever low opinion the country has of its press, it has even less confidence in politicians as invigilators, says Benedict Brogan.

8. Ukip are not closet racists – but we’ve had enough (Daily Telegraph)

The adoption case in Rotherham has become a wake-up call from Ukip to Westminster, writes Nigel Farage.

9. It would make a mockery of justice if foreign judges start to overrule our own institutions (Daily Mail)

It’s time to face up to the issue and pull out of the European Court’s jurisdiction altogether, argues former justice minister Nick Herbert.

10. Binyamin Netanyahu's fig leaf could be back (Guardian)

Retirement might not stop Ehud Barak playing a key role in any Israeli plans to attack Iran, writes Aluf Benn.

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Scotland's vast deficit remains an obstacle to independence

Though the country's financial position has improved, independence would still risk severe austerity. 

For the SNP, the annual Scottish public spending figures bring good and bad news. The good news, such as it is, is that Scotland's deficit fell by £1.3bn in 2016/17. The bad news is that it remains £13.3bn or 8.3 per cent of GDP – three times the UK figure of 2.4 per cent (£46.2bn) and vastly higher than the white paper's worst case scenario of £5.5bn. 

These figures, it's important to note, include Scotland's geographic share of North Sea oil and gas revenue. The "oil bonus" that the SNP once boasted of has withered since the collapse in commodity prices. Though revenue rose from £56m the previous year to £208m, this remains a fraction of the £8bn recorded in 2011/12. Total public sector revenue was £312 per person below the UK average, while expenditure was £1,437 higher. Though the SNP is playing down the figures as "a snapshot", the white paper unambiguously stated: "GERS [Government Expenditure and Revenue Scotland] is the authoritative publication on Scotland’s public finances". 

As before, Nicola Sturgeon has warned of the threat posed by Brexit to the Scottish economy. But the country's black hole means the risks of independence remain immense. As a new state, Scotland would be forced to pay a premium on its debt, resulting in an even greater fiscal gap. Were it to use the pound without permission, with no independent central bank and no lender of last resort, borrowing costs would rise still further. To offset a Greek-style crisis, Scotland would be forced to impose dramatic austerity. 

Sturgeon is undoubtedly right to warn of the risks of Brexit (particularly of the "hard" variety). But for a large number of Scots, this is merely cause to avoid the added turmoil of independence. Though eventual EU membership would benefit Scotland, its UK trade is worth four times as much as that with Europe. 

Of course, for a true nationalist, economics is irrelevant. Independence is a good in itself and sovereignty always trumps prosperity (a point on which Scottish nationalists align with English Brexiteers). But if Scotland is to ever depart the UK, the SNP will need to win over pragmatists, too. In that quest, Scotland's deficit remains a vast obstacle. 

George Eaton is political editor of the New Statesman.