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<p>Based on the main IFS projections, an independent Scotland would need to make permanent tax increases or spending cuts in 2020 equivalent to £6.1 billion (in 2012-13 prices) to put debt on course to reach 40% of GDP in 2062-63. This is equivalent to tax increases or spending cuts of £1,150 per person and £2,560 per household. Under their most optimistic scenario, the IFS determined that an independent Scotland would need to make a permanent adjustment in 2020 equivalent to increasing the basic rate of tax by 8 pence, which would add an average of £1,000 per year to the income tax of a basic rate taxpayer (in 2012-13 prices).</p><p>The most optimistic IFS scenario for an independent Scotland still therefore means an adjustment that would be two and half times the size that the IFS forecast would be required for the UK.</p> |