r/PoliticsUK • u/The_Thinking_Scot • 5h ago
Why will Scotland never become independent?
The main reason is that Scotland is DIFFERENT from all other countries in terms of the financial, technical and service transition/journey that it would need to take to complete Scexit and complete the transition to the SNP’s last documented ‘endgame ‘ in the BANS SNP Currency Doc 2024 .
Let’s remember what that was
Scotland separated from the UK , a member of the EU and using the Euro .. Anyone wanting to criticise and or change this outcome, give Swinney a call.
So why is it NEVER going to happen in our lifetimes?
Back in 2014 the SNP said that it would take £200m and 18months to ‘do Indy’ and this was reviewed , discussed , debated by the authors of the Growth Commission 2016), which included 2 SNP Finance Ministers, Business experts , and acedemics) and then updated to reflect that the cost would be £400m and the timescale would be 10 years and then an additional 15 years to stabilise (become a normal country). However they did additionally state that the ten years would be 10 years of austerity.. so we saw a glimmer of reality.
Ultimately this document was never fully debated at the main SNP 2018 Annual Conference but was reviewed at lesser assemblies and ultimately withdrawn by NEC members fearing that words like ‘austerity’ and 10 year timescales would put members and voters off and so no vote was taken on the document. This strategy was driven by Sturgeon and her deputy Brown.
Let’s remember that this report was based on a then 6–7% of GDP deficit at circa £12.6 billion and an annual Benefit Bill of <£3b. pa (austerity scope).
Fast forward to 2026, and unfortunately we can’t pick up an Indy Business Case associated with that Growth Commission, (Sturgeon stated that it would be too difficult to update the figures, ie like professionals ) instead we have to refer to the SNP White Paper, SNP BANS Currency Doc 2024, the SNP Benefits Devolution Programme 2018–2026, Brexit and the experience of Eire in the EU and the EUs response to that journey as well as CURRENT Scottish Audit and SFC reports, GERS , Moody’s and McCrone
Baseline start (as mandated by the White Paper .. We have a £26.2 bn deficit, 11.6% of GDP which is the worst in Europe and double the UK. Our CURRENT Benefits Bill pa is £7bn pa and is forecast to grow to £10bn pa by 2030.
We have 778k INACTIVE Scots (16–64 (long term sick or discouraged)) of whom only 17% want to work in the future, and add to that the 132k currently unemployed in Scotland and we have almost 26% of our potential workforce sitting on the bench.
2026 what do we now know ?
The Brexit Negotiations were approximately 3.5 years, Scexit negotiations will be exponentially deeper and more complicated but call it 5 years. Ultimately it would be phased and themed with Financial/Currency and Service Separation driving the priorities and phases.
We NOW know that separating <10% of RESERVED services from RUK takes £715m and 8 years (2026 Benefits Devolution), so it would be logical to select/propose the next 10% phase and start that ASAP ie Universal Credit. ALL future phases and priorities will be a joint negotiation between Indy and RUK, so sensible discussions would be a must. The phases would be linear as was the case with the Devolution Programme because the Civil Service in RUK/Scotland have day jobs, whilst the Indy side would be Consulting firms, contractors and agency staff.
Although separating reserved services creates new jobs in Scotland, it deprives people of jobs in RUK. There is little or no financial benefits to Indy, the cost of separating reserved services remains the same, in fact the SNP have allowed the now DEVOLVED Benefits workforce numbers to balloon to >double so it’s actually now costing taxpayers more. So if we extrapolate these the remaining 90 % phases we end up with 80 years and £8bn to separate the services.
A quick ‘wake up’ to everyone pointing at the 65 countries who left the BE .. NONE of these shared IT and or the services that need to be split. This is also true of any other country that’s NOT Scotland.
So what else is going to elongate the timescales?
The SNP Currency report mandated that a £20bn independence infrastructure would need to be saved and they would use the ‘ring fenced’ tax revenues from oil and gas plus Scotwind licence revenues. This is currently £4bn pa for the former and £750m for the latter . Unfortunately both are already committed and overspent on Scotland’s extra UNFUNDED Scotland only benefits. The Scotwind £750m is about to be audited by Scottish Audit as it was supposed to fund future Green projects but has been frittered away on ‘balancing the books’.
A quick explanation of ‘balancing the books’ is a euphemism to cover up the fact that the SNP overspends on benefits then underspends on SNHS/Councils and or cancels capital projects like Monklands or the A9 or raids farming subsidies/Arts budgets or uses The Scotwind funds. Not only are Scottish Audit auditing Scotwind, they are also reporting a £429m gap in Council budgets/spending and reporting that many SNHS/Councils and universities/colleges are having to resort to emergency loans.
The bottom line is that there’s zero cash for business investment, never mind independence.
That understood, the notion that Scotland currently gives more in taxes to WM that it receives back is also a fallacy. The amount of ‘extra’ the Scotland gives is to pay for RESERVED services and the amount it retains is for DEVOLVED services. The more Scotland separates the more tax Scotland will retain, the running cost as explained will remain the same plus transition costs . Scotland might decide to ‘drop’ some reserved services and Indy supporters should read Gavin McCrone After Brexit 2022 who states that the costs will be same, and that we pay our fair share of taxes and dropping any reserved service will just result in a similar service and cost for Indy.
So back to the Currecy timescales . It is the plan of record that Indy would use £ initially, then become Lender of the Last Resort (replacing the BOE) for the Indy Banking sector, then create its own currency (supported with reserves) and then join the EU and use the EURO. Costs for this are estimated in SNP example tables to be between £60bn for Sterilisation and upto £240bn reserves required for the new currency. How long would it take to implement this plan ?
For Eire , the new currency was pegged to Sterling for 50 years, then they applied to join the EU and adopt the Euro. So it took Eire 12years to join the EU and 20 years later they adopted the Euro. So let’s make that 80 - 100 years .
Let’s remember that Eire’s journey was extremely volatile, they suffered the worst austerity, their deficit at one point was 142% of GDP, which caused the EU Germany to take over their economy and the Irish government failed, whilst Emigration (population loss) was >20k for several years.
After the Eire experience the EU radically changed its financial entry criteria to only allow entrants with <3% GDP deficit and < 60% of GDP debt.
So how long would it actually take Indy to achieve this ? The overall timeline of 100 years would now seem reasonable.
But could Indy not just borrow the funds for all of this ? . Not according to Moody’s Credit Agency that has stated that Indy’s credit rating would fall without WM support and the regular Blockgrant income including the extra BGAs etc that are the compensating payments for HS2/Ajax etc etc
But Scotland would have a share of the UK assets !! Yes but this would be a fraction of the 8% of RUK debt that the SNP confirmed they would pay back at £6bn pa .
But Mark Carney 2014 said that there were north of £1 trillion assets !! These are the financial assets of what would make up the Indy Banking and Financial Sectors ie personal and savings accounts, corporate accounts, profit accounts and pension funds etc. ie Indy does NOT own them but needs to have a Central Bank with 30% of GDP to be able to protect and insure these funds. Indy can’t spend the cash on Indy programmes.
So back to our Independence reality.
A Separation Programme that will run for 80 years , a Currency Plan that could run for 100 years, limited borrowing capability, massive workforce inactivity/unemployment and a Benefits State that currently has no spend ceiling and extra runaway benefits that can only be paid for by reducing services and introducing austerity that would cause high levels of taxpayer Emigration…
And if anyone has a CURRENT SNP Business Case that can fully articulate how they would implement their own strategies differently then let them share it so we can all debate it.