Quote:
Originally Posted by Hugh
£10 billion deficit?
Perhaps they’ll do what the U.K. does - run up a National Debt, and run at a deficit until they sort out income to be greater than expenditure...
U.K. was (at the time of the 2019 Budget) expecting to run at a £29.3 billion deficit for 2020 (I’m sure that’s been revised upwards now), and having a National Debt of £1,840 billion. |
2018-19 spending £78,598m, income(including oil) £65,442m, equals £13,156m deficit. Then assume no defence spending of any sort(no Trident etc), that reduces the deficit by £3.3bn, giving a deficit of around £10bn. Nobody would lend to Scotland unless they reduce that deficit. You can't keep forever borrowing money as Greece, Ireland, Spain, Portugal, and Cyprus will tell you.
A huge chunk of the UK deficit is subsidising Scotland. Then add in Wales and NI. Would the UK be able to borrow money, if the UK deficit was the same relative size as Scotland's? Even if they could borrow money, it would be very expensive(ie high interest) to do so. Scotland has been running a deficit for 20 years. They have no intention of reducing it. b