Scotland must take pay cut for independence
THE way that the Union was set up, the Westminster parliament extended its authority across Scotland and the Scottish parliament adjourned itself.
So national debt is Westminster's problem. Has the SNP the mandate to lumber an independent Scotland with 10% of the debt to keep sterling?
In order to borrow, an independent Scotland would need a Scots pound. If it kept a British pound there could be no public-sector borrowing, only a balanced budget.
A Scots pound would devalue to about 77p, if Ireland's 1979 experience is to go by, cutting spending power of public-sector wages, pensions and benefits. Consumer prices would jump 40% if Scotland had its own currency. It would need one, but do the Scots want a pay cut?