FISCAL INDEPENDENCE SOLUTION TO BARNETT PROBLEM.

FISCAL INDEPENDENCE SOLUTION TO BARNETT PROBLEM.

BARNETT A PRE-DEVOLUTION “RELIC”

Commenting on a report from the House of Commons Justice Select Committee
on ten years of devolution which describes the Barnett formula as a
“relic” and suggests there is no need for a full time Secretary of State
for Scotland SNP MP and Constitutional Affairs spokesman Pete Wishart
said;


"Ten years into devolution the case for ending the block grant and
replacing it with full fiscal powers is now undeniable.

“While others, including this House of Commons report, acknowledge there
is a need for reform it is only the SNP that has a way forward for
Scotland’s economy.

“Full financial independence for Scotland would put an end to these
attempts to jump through constitutional and fiscal hoops and give Scotland
the power to control and manage it’s own economy to best protect
Scotland’s jobs and to deliver a strong and sustainable economic future
for Scotland.

"The reality is that the flow of funds in the UK is from Scotland to the
London exchequer - not the other way round. Therefore, the only acceptable
alternative to the Barnett Formula is full financial independence for
Scotland.

"The most recent statistical analysis - Government Expenditure and Revenue
Scotland - shows that in 2006/07 Scotland had a current budget surplus
worth 0.7% of GDP, whilst the UK had a deficit of -0.4% of GDP.

"Scotland’s labour market continues to outperform the rest of the UK, and
on the size of the public sector, when a geographical share of North Sea
Oil is taken into account, total government expenditure as a percentage of
GDP in 2006/7 was marginally less in Scotland than in the UK as a whole.

"The SNP’s clear constitutional preference is for independence with all
the responsibility that brings. Full fiscal autonomy would see Scotland
control the levers necessary to reflate the economy and support recovery,
including providing the right conditions for high-productivity sectors to
thrive - creating the more successful country we all want to see."