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Scots 'face cuts or tax rises'

An independent Scotland would need to cut spending or increase taxes more than the rest of Britain to help balance its public finances in the long term, a report by the IFS think tank has claimed.

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Debt in independent Scotland 'could exceed income'

Public debt in an independent Scotland could exceed national income by the early 2030s, according to projections by the IFS.

A new report found that in order to avoid this, Scotland would need to implement "significant additional fiscal tightening".

Even under the most optimistic scenario we consider, the long-run 'fiscal gap' in Scotland would be 1.9% of national income compared to 0.8% of national income for the UK as a whole.

– ifs report

In order to bring debt down to 40 percent of national income over the next 50 years, it would need to increase taxes or make cuts worth £6 billion in today’s terms.

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