TREASURY BURY BARNETT REFORMS WHILST SCOTLAND'S OIL SUBSIDISES LABOUR FAILURE

TREASURY BURY BARNETT REFORMS WHILST SCOTLAND'S OIL SUBSIDISES LABOUR FAILURE

FISCAL AUTONOMY ONLY ALTERNATIVE TO LONDON LABOUR'S RIP-OFF

Commenting on the publication of the UK Government’s recommendation of no change in response to House of Lords Select Committee report on the Barnett formula – which had called for the scrapping of the funding mechanism - SNP Treasury spokesperson Stewart Hosie MP said that with the Pre-Budget Report showing Scotland’s oil will pump £50 billion into the UK Treasury over the next six years the only acceptable alternative was full fiscal autonomy for Scotland - allowing the country to raise all the money it spends.

Mr Hosie said:

“After two years this is a totally inadequate and unsustainable response from the Treasury. Ministers have ducked the issue, and buried Barnett for another day. With the Pre-Budget Report showing Scotland’s oil will raise a £50 billion for the UK Treasury over the next six years it is obvious Labour see that oil as a milk cow.

"With the most recent official figures showing that Scotland was in surplus for three years running to the tune of £2.3 billion – compared to a UK deficit of £24 billion over the same period – this decision highlights the real rip-off with London Labour ripping off Scotland.

“The only acceptable alternative to the Barnett formula is full fiscal autonomy for Scotland, allowing the country to raise the money it spends. That is the best and simplest solution – anything less would messy and unsustainable, and could well leave Scotland worse off.

“ The Barnett formula is no longer sustainable and should be replaced – and it must be replaced with a system of full fiscal responsibility giving Scotland the powers over taxation, including oil and gas, and spending that are needed to effectively manage the Scottish economy.

“And the case for financial independence is reinforced by the recent Pre-Budget Report which will see Scotland’s budget fall by over £800m next year, while the UK Treasury benefits from £50bn in North Sea Revenues.”