Independent Scots’ tax hike

Tim Wallace
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AN INDEPENDENT Scotland would have to raise £6bn per year through tax hikes or spending cuts if it was to reduce its debts to a sustainable level, the Institute for Fiscal Studies (IFS) warned yesterday.

On top of the UK’s currently planned spending squeeze, it would have to find another 4.1 per cent of GDP from 2020 to cut its debt to 40 per cent of GDP, analysts said.

That would be equivalent to a nine percentage point hike in the standard income tax rate.