Sturgeon set to lose big as independence would see the end of ‘redistribution of resources’ | UK | New UK News

Ms Sturgeon was today re-elected Scottish Prime Minister by the MSPs. She got through the first ministerial vote after her Scottish National Party (SNP) won 64 of 129 seats – one less than a majority – in the May election. Scottish Tory Leader Douglas Ross and Liberal Democrat Leader Willie Rennie were both easily defeated, each getting 31 and four votes respectively.

Scottish Labor and Scottish Greens both abstained.

This puts Ms Sturgeon on a good track to push for a second Scottish independence referendum, which she hopes to hold in the near future, but not before the country’s health epidemic is put to sleep.

To that end, she was invited to participate in a recovery summit with Prime Minister Boris Johnson and Welsh Prime Minister Mark Drakeford.

Such trilateral meetings would cease if Scotland separated from the UK and would no longer be the only thing the country would no longer be eligible for.

According to a report released by the Institute for Government (IfG) in April, Scotland will suffer economically if it seeks a sovereign path.

Noting that the fiscal outlook across the UK is likely to be worse for some time – due to the coronavirus pandemic – he said it would be “reasonable to assume that the budget balances of the four will be even greater far in the red. the next five to ten years compared to 2018/19 with no further action to raise taxes or cut spending. “

Crucially, the report adds: “There are many reasons why the Scottish or Welsh people might want to seek independence from the UK, or why the people of Northern Ireland might want to be part of a united Ireland.

“However, one of the costs of doing so would be that they could no longer benefit from the reallocation of resources that is currently taking place across the UK.”

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In order to reduce this deficit, the report said, Ms. Sturgeon or whoever was in power would have to make sweeping spending cuts and tax hikes.

However, he added that it would be easier for an independent Scotland to reduce its deficit to sustainable levels compared to an independent Wales or Northern Ireland after reunification.

Gemma Tetlow, author of the report and chief economist at IfG, said: “All supporters of the break with the UK must address the reality of nations’ current fiscal imbalances and the difficult political choices it would require after the secession.”

Scottish Conservative Economics spokesman Maurice Golden said the report “exposes the frightening economic reality of Scotland’s uprooting from the UK”.

He said, “When the focus has to be on recovery and rebuilding, it is unwise beyond belief.

“Deep down, Sturgeon must know the devastation this would cause.”

Meanwhile, after getting Holyrood, Ms Sturgeon embarked on a cabinet reshuffle.

She appointed John Swinney as minister in charge of recovery from Covid, who will also remain deputy prime minister.

It will mobilize “the Scottish government and the public, private and third sectors at large to ensure a strong recovery”.

Ms Sturgeon said the move was “a key step in getting Scotland’s recovery off to a good start”.