Letters / Questions and fudges
Nationalists like to accuse anyone who disagrees with them of scaremongering, but to ignore the realities that would face an independent Scotland is something much worse. It is not only ignorance; it is fraud.
That is just what the Scottish government’s white paper is, a document that denies the realities of independence and is full of inconsistencies and unbelievable wish lists.
Here is a sample of cherry picked questions and answers in the document along with my comments after each answer:
Q. Will an independent Scotland continue to use the Bank of England?
A. Yes, the Bank of England is the central bank for Scotland, as well as for England, Wales and Northern Ireland. It was formally nationalised in 1946 and is therefore an institution and asset owned both by Scotland and the rest of the UK.
In reality this question cannot be answered until after the negotiations with the UK government in the event of a yes vote, a truthful answer would have been we don’t know and we don’t have a plan B.
Q. How would an independent Scotland use tax powers?
A. With its current powers, the Scottish Parliament has frozen council tax and delivered the most competitive business rates in the UK.
But will the council tax stay frozen or will it go up with a bang? Remember it has been frozen for seven years; it will be nine years by the time we know if we are independent or not. Cash strapped councils will want to increase it by as much as 20 or 30 per cent unless it is capped, this could mean rises of over £150 a year.
Q. What will tax rates be in an independent Scotland?
A. On independence, Scotland will inherit the tax system and the prevailing UK rates and thresholds for all taxes. Decisions on specific taxes – including tax rates, allowances and credits – will be made by the Parliament and Government of an independent Scotland.
For the first time ever there will be a guarantee that taxes will be set by a government that has the support of the people of Scotland.
Independence will provide the Scottish Government and Parliament with the powers to set tax rates and thresholds which are right for Scotland, allowing Scottish Ministers to develop policies that will deliver sustainable economic growth and a fair society.
Yes, all very well but what will the tax rate be in an independent Scotland? This is one of the biggest questions asked in this debate and it has not been answered.
Q. Would the current rates and thresholds for personal income tax be altered or would there be any significant changes in the rates of insurance premium tax, VAT or employers’ National Insurance contributions?
A. Detailed policies on tax and spending will be set out in party manifestos for the 2016 election and thereafter in the first budget in an independent Scotland. There is no requirement to increase the general rate of taxation to pay for the services we currently enjoy in Scotland.
What about promises made on extra services we will enjoy in an independent Scotland. Services like child care, pensions, cuts in corporation tax, financial help for small businesses etc etc? How will we pay for these over and above the services we currently enjoy? With a greater tax burden on the working man, this has been estimated at about £1,000 per year.
Q. A. Would the fuel duty rate be altered following independence?
A. With independence we will examine the benefits of introducing a fuel duty regulator mechanism to stabilise prices for business and consumers.
Yes but will fuel duty rate be altered after independence? Once again a fudged answer.
I have copied and pasted these five questions and answers from the government’s white paper. There are 150 pages more and already I estimate we will be well over £1,000 a year worse off.
Just glancing through the rest of the questions and answers I think I would rename them questions and fudges.
Gordon Harmer
Brae
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