Morning Call: pick of the papers

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

1. London must be free to tax and spend (Financial Times)

Other capital cities have a wider tax base and more freedom to set rates, writes Tony Travers.

2. Big business mustn’t crush little guys in cars (Times)

If oil executives have fixed prices there should be a windfall tax and jail sentences, says Robert Halfon.

3. European Union: if the 'outs' get their way, we'll end up like Ukraine (Guardian)

There will come a point when Britain's relationship with the EU will change: to rush to the exit now would be a leap in the dark, says Vince Cable. 

4. France should face up to its fears (Financial Times)

The realisation of what is needed explains the people’s profound anxiety, writes Maurice Lévy.

5. Old Tory scepticism has won, yet Europe still ravages the party (Independent)

Eurosceptic anxiety under Blair was partly justified, says Steve Richards. They were right to be on their guard.

6. Have MPs learnt a thing since 2009? Their greed suggests not (Daily Telegraph)

The expenses scandal hasn't gone away, with politicians of all shades still milking the system, writes Peter Oborne.

7. Work on into your 70s. It will be good for you (Times)

Putting off retirement is good for the economy, writes Mark Littlewood. And people will be happier, healthier and wealthier too.

8. We have to decide to listen to sexually abused children (Guardian)

The cost of ignoring the girls involved in the Oxford case is too high, writes Zoe Williams. Why weren't they given this basic human respect

9. Who’s the odd one out in Europe? Not us (Independent)

France has left Germany's side and the public mood is heading south, writes Andreas Whittam Smith.

10. Mauling for Maude over his plans for change (Daily Telegraph)

Bernard Jenkin's select committee are putting the boot in over civil service reform, says Sue Cameron.

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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.