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Scotland and the Union

The hon. Gentleman makes a valid point, but I think that Mr. Carlyle, like a number of my colleagues, might be somewhat confused about what this Labour Government have done for Scotland in terms of jobs. If Mr. Carlyle wishes to give the Government a kicking, that is entirely up to him, but there are consequences—independence and the break-up of the UK. People need to understand that independence comes at a cost. Scotland represents just over 8 per cent. of the UK population, one third of its land mass and one half of its coastline. Government officials, independent experts and informed commentators agree that the UK’s way of financing public services spending across Britain is based on equality of service provision. On that basis, Scotland benefits from a Union dividend that recognises the distinctive nature of service delivery to the Scottish people. In each of the last eight years for which official figures are available, public expenditure in Scotland exceeded revenue. The SNP would give up the Union dividend, which benefits Scotland by more than £11 billion. Outside the UK, it would lose that dividend. Revenues from North sea oil and gas cannot fill the SNP’s financial gap. Even assuming the highest possible share of North sea revenues in Scotland when oil prices are high, those revenues cannot plug the SNP’s fiscal hole, and production is already in long-term decline. The SNP’s plans to break up Britain, and its incoherent tax and spending plans, would leave the party with a net deficit of more than £12 billion, equivalent to well over £5,000 per household per year. Independence is not only a risky business, but an expensive one, too. I hope that the Mr. Carlyles of this world will understand that.