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BREAKING NEWS NO 11

Monday 08 September 2014

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Peter Kellow, DRP Leader, comments...

In this newsletter, Nadeem Walayat gives a full account of the consequences of a YES vote for both Scottish and Rump UK economies. His main conclusion is:

Whilst an £9 billion annual loss in revenues [from London] would devastate the £160 billion Scottish economy resulting in deep spending cuts and economy killing tax hikes to fill budgetary void. However, the saving to the UK of £9 billion per year would be more than offset by the loss of international investment as the UK becomes a far more riskier entity to invest in, park funds with and to do business with, potentially resulting in the annual loss of revenues of as much as over £100 billion per year.

So a bummer for both sides it seems.

What Nadeem does not mention, but which Scottish politicians have hinted at, is that Scotland will promote itself to full tax haven status on independence and do war with the City of London and the Rump UK Inland Revenue. Tax havens have to be fiscally sound to attract money but on the other hand the gains could make Scotland fiscally sound.

The Scottish failed banks of RBS and HSOB would be a recommendation to tax evaders as they would see Scottish bankers talked their language of ripping off the people so that the global financial superclass can gain.

 


REGIONS

Scottish Independence YES Vote Panic - Scotland Committing Suicide and Terminating the UK?

Scotland ripping itself apart form the United Kingdom would be a twin edged sword for the UK because on the one hand the UK would no longer be burdened by having to to annually bribe the Scots with ever larger amounts of net subsidies where the annual block grant currently stands at £32 billion per year that helps bridge the gap between Scottish socialist government deficit spending and tax revenues.

Against which there would be the loss of North Sea oil revenues that currently generate about £7 billion in tax revenue per year and therefore a net subsidy (bribe) to Scotland to stay in the Union of £25 billion per year before tax adjustments (income, corporation, vat etc.) that brings the net annual subsidy to Scotland down to £9 billion a year.

Whilst an £9 billion annual loss in revenues would devastate the £160 billion Scottish economy resulting in deep spending cuts and economy killing tax hikes to fill budgetary void. However, the saving to the UK of £9 billion per year would be more than offset by the loss of international investment as the UK becomes a far more riskier entity to invest in, park funds with and to do business with, potentially resulting in the annual loss of revenues of as much as over £100 billion per year.

That is the real price of Scottish Independence and explains why Scotland can so easily blackmail the UK into paying a net £9 billion annual subsidy.

Whilst England (UK) economy would benefit by Britains deficit effectively being cut by at least £9 billion per year as a consequence of England no longer having to bribe Scotland to stay in the Union with a net subsidy of £9 billion per year which therefore in terms of the deficit forecast would result in an additional reduction of the deficit by £45 billion over the next 5 years.

The financial crisis has resulted in predominately scottish banks in the forms of RBS and HBOS, resulting in liabilities of more than £1 trillion, that and transference of 8.5% of public debt would greatly improve the remaining United Kingdoms balance sheet as the costs of bank capital injections and interest payments far exceeds the revenues of North Sea Oil and if the Scottish subsidy is taken into account there is a large net cost to maintaining the Union.

Therefore the net benefit to England from an independent Scotland would be estimated to be far more than the revenues lost from North Sea Oil, an estimated net annual saving of at least £20 billion per year with the added bonus of eventually having transferred liability for bankrupt Scottish banks permanently away from UK tax payers.

Read full story ......