Never Let a Scotsmen Get Near a Penny

Sturgeon's Duplicity, Cameron's Complicity

The Scots are universally known for their parsimony.  As the old chestnut has it, the Scots invented copper wire, as two sons of the Highlands fought over a penny.  How they must be ruing the day they voted in Nicola Sturgeon and the Scottish National Party.  Under her prudent stewardship, Scotland ran up a fiscal deficit of 15 billion pounds last year.  This momentous achievement amounted to 9.7 percent of Scottish GDP, compared to the UK running up a deficit over the same period amounting to 4.9 percent of UK GDP.

Mind you, the size of the UK deficit is way, way too much.  But Scotland's is reprehensible.  It seems as though the Scottish National Party believe that money grows on trees.  What's a few billion amongst friends, eh?  In any event, someone else will pay for it.

This all arises out of an electoral con.  During the referendum over whether Scotland should withdraw from the UK, Nicola Sturgeon and her party argued that there was indeed a free lunch that all Scotland could enjoy.  It could enjoy, on the one hand, a huge expansion of government spending, and on the other, the sure confidence that someone else would pay for it.  In this case the "someone else" was a vast exaggeration of the value of its oil deposits.

Ms Sturgeon blamed the collapse in the oil price and UK Government “mismanagement” of the North Sea. Reiterating her support for independence, she also argued it was better to consider Scotland’s financial position over the past decade than in one financial year alone.

But next year’s oil revenues are expected to be far worse, with Scottish Government figures showing the total income fell from £1.8 billion in 2014/15 to only £55 million in the first half of 2015/16.  The First Minister also argued the drop would be more than offset by an increase in onshore economic activity, but even on this measure the Gers report found Scotland was lagging behind the rest of the UK. [The Daily Telegraph]

No shrinking violet, Ms Sturgeon blamed the UK government on not husbanding former oil revenues prudently enough in the past.  She also denied that government spending was out of control in Scotland, suggesting that the government needed to double down and spend up some more.

But, speaking at a briefing in Edinburgh, Ms Sturgeon said: “Scotland has contributed £300 billion in oil revenues to the Treasury in the lifetime of North Sea oil and gas.  “Is it a sign of the broad shoulders of the UK that today, when the oil and gas sector is facing the challenges that it is facing, that we are sitting without an oil fund that has been built up over the good years of oil and gas?”

She added: “I would take the opposite view. What we are talking about here today is at least in part an indictment of the mismanagement by the UK of Scotland’s finances and our oil revenues in particular.”  Ms Sturgeon denied public spending was too high north of the Border and argued more powers for Scotland would provide "more ability to grow and diversify our tax base".

Eventually, of course, socialists run out of other people's money.  But in the meantime, she obviously believes that there are plenty more fat sheep to fleece in the rest of the UK.  Keep that money flowing north, guys.  "Of course.  Sure, why not?", was David Cameron's response.  No problem.  The rest of the UK will pick up the tab for dear old Scotland's profligacy.

Speaking at Prime Minister’s Questions, Mr Cameron said: “On the day that the profit-and-loss account comes out for Scotland, you can see there is a £15 billion gap that Scotland would face if it was outside the United Kingdom.  “I dread to think what taxation would have to be levied, not just on whisky but on petrol, on work, on income on homes. That’s the prospect of life outside the United Kingdom. That’s why I’m so glad we voted to stay together.”

"I am so glad we get to pay your bills, Scotland."  From an outsider's perspective, Brexit can't come quickly enough.  Nor can Scotland's independence (from a UK taxpayer's perspective.)  What a mess.