Ten months before the people of Scotland will face the question “Should Scotland be an independent country?” in a crucial referendum, the Scottish government published its prospectus on what the independent nation would look like.
“We do not seek independence as an end in itself,” insisted Alex Salmond, Scotland’s First Minister and leader of the Scottish National Party (SNP) as he launched the paper, “Scotland’s Future: Your Guide to an Independent Scotland,” in Glasgow on Tuesday.
In a 670-page tome, the government set out its answer to hundreds of questions ranging from pensions (an independent Scotland would introduce a new state pension slightly above the current UK rate), to what Scotland’s new defense force would look like, and a new passport for Scotland – measures that Salmond insisted would lead to a “wealthier and fairer” Scotland.
The referendum will take place on September 18, 2014, giving the government 18 months to prepare – should the answer be yes – before a potential “independence day” on March 24, 2016.
However, even before the launch of the report a battle of words broke out between the governments in Westminster and Scotland over the economic realities of what an independent Scotland could afford.
The UK Treasury claimed that taxes would have to rise by about a £1,000 a head in an independent Scotland, following analysis conducted earlier this month by the independent Institute for Fiscal Studies which predicted that even under the most optimistic forecasts for Scotland’s revenues from North Sea oil the fiscal gap for the country would be in the region of £3 billion.
The claims were speedily rejected by the Scottish government that insists that no tax rises will be brought in despite its sizable spending pledges.
What currency an independent Scotland would take has also quickly become an area of focus. The Scottish government insists that keeping the common currency, the pound, would be both in the UK’s and Scotland’s interest – something that Westminster firmly rejects.
On Tuesday the central government’s Scottish published a paper on “Why a currency union would be bad for Scotland and the UK,” – arguing that the troubles of the Euro Zone pointed to why a currency union without close political and fiscal integration would run into problems.
“No one should vote for an independent Scotland on the basis that they will get to keep the pound,” it insisted. The Scottish government, however, insists that it would not be willing to take on UK liabilities without a currency union.
Business organisations have also been largely in favour of Scotland remaining in the UK: “The CBI believes that the nations of the UK are stronger together and that Scotland’s business and economic interests would be best served by staying in the UK,” said director general of the Confederation of British Industry John Cridland.
Ahead of the publication, it is the “Better Together” anti-independence campaign that remains more popular.
According to a survey published by the Sunday Times during the weekend, just 38 per cent supported an independent Scotland. Whether the more detailed picture presented on Tuesday will do anything to change that remains to be seen.
‘Independent Scotland will ease rules for international students’
An independent Scotland would seek to woo back international students who may have been put off coming to the UK because of recent changes to the region’s immigration regime.
An independent Scottish government would reintroduce the post study work visa for non-EU students, which was abolished by the government in Westminster, according to the white paper published by the Scottish government on Tuesday.
“This visa will encourage more talented people from around the world to further their education in Scotland,” according to the paper, “Scotland’s Future: Your Guide to an Independent Scotland.” Scotland currently attracts around 3,000 international students a year.
The number of Indian students entering the UK has fallen sharply in the last couple of years – down by 23.5 per cent, or nearly 10,000 in 2011-12 from the period before.
Should Scots vote “yes” in next September’s referendum, the government would also ease immigration rules in the region – an area which the current devolved government has limited control over.
Among the proposals are lowering the financial maintenance and minimum salary thresholds required for entry, while incentives will be provided for non-EU migrants who move to more remote areas, or bring new skills to the region.
“Migrants have played an important part throughout Scottish history in enriching and renewing our culture and boosting the economy of the country. We will welcome people who want to come to work and live in Scotland.”