Treasury: Scottish people '£1,400 a year better off in UK'

Scottish people will be £1,400 a year better off if the country remains in the UK, Chief Secretary to the Treasury Danny Alexander said. However, the Scottish government claimed an independent country could be £5 billion a year better off.

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Independence 'means tax hikes or spending cuts'

Scots would face tax rises or "substantial" spending cuts if the 'Yes' campaign win September's referendum, Lib Dem minister Danny Alexander has claimed.

Speaking on Radio 4's Today programme, the Chief Secretary to the Treasury said a decline in oil revenues and the impact of an ageing population would mean a tough financial outlook.

Danny Alexander claims Scots will face a severe financial impact if the country becomes independent. Credit: Danny Lawson/PA Wire/Press Association Images

"That creates a widening gap in the public finances which would mean there would either have to be large tax rises or substantial spending cuts just to balance the books in an independent Scotland," he said.

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