John Swinney: Scotland is reaching the limits of devolution, as final independence paper released

The First Minister said the “constraints” of the United Kingdom placed limits on what the Scottish Government could do to improve living standards.

The new paper claims Scottish households could be more than £10,000 better off per year if the country was independent.

The “Fresh Start with Independence” document published on Wednesday outlines the SNP’s position on key issues such as currency, membership of the EU and the border with England, but is light on detail.

‘Yet another fantasy paper’

Critics dismissed it as a “yet another fantasy paper” containing “baseless claims”. Its publication comes ahead of the SNP’s annual conference in Aberdeen this weekend, where the party’s independence strategy will be debated.

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Speaking at an event in Edinburgh’s National Portrait Gallery, the First Minister warned of a “rightward shift” in UK politics.

“Given the direction Westminster is intent on taking Scotland day by day, the need for people in Scotland to consider an alternative future is becoming more and more pressing,” he said. “Indeed, I believe it is urgent and essential.

“The prospect of Nigel Farage becoming prime minister is a very real one. But even if Farage does not make it to Number 10, he is driving the agenda at Westminster ever more to the right.

“I believe, with all my head and all my heart, that cannot be the best future for Scotland.”

The First Minister argued leaving the UK was an “opportunity of higher living standards”.

Resolution Foundation analysis

The new paper references analysis from the Resolution Foundation, which found UK households would see an £8,300 per year bounce if the average income and inequality was the same as other countries of a similar size.

If the same analysis was applied to an independent Scotland, the paper argued, Scottish households would be £10,200 better off.

But the document adds: “That does not mean Scottish households would instantly be more than £10,000 richer each year if Scotland was a nation state, or even that we would be as successful just by being independent.

“Instead it shows how much better those comparable nation states do than the UK, and what we might be able to do if we were able to make our own choices about the shape and direction of our economy.

“The prize of independence, the Scottish Government believes, is not matching the performance of these independent countries straight away, but the opportunity to start catching up.”

‘Limits of devolution’

Speaking to journalists, Mr Swinney said there was a crisis in living standards in the UK and the Scottish Government had “tried, as far as we can, to create differential outcomes”.

But he added: “We are either reaching or we have reached the limits of devolution, because I think the steps that we have taken on the Scottish Child Payment are big, bold steps, but as the Joseph Rowntree Foundation said on Monday, we’ve got to do more.

“I accept that, but I’ve also got to recognise the context and circumstances in which we operate, and that’s very heavily influence by the macro framework of the United Kingdom.”

He said SNP ministers would “continue to search for the opportunities to do more, but fundamentally we are reaching the limits of devolution”.

The First Minister continued: “On the fundamental question, are we able to demonstrate improvement in living standards for people in Scotland? I think the pathway to do that is through independence, because the limitations and the constraints of the United Kingdom are such that that establishes limits on what we are able to take forward, and the difference we are able to make.”

Currency and borders

The new paper says Scotland would continue to use the pound sterling for a period after independence before moving to a separate Scottish pound, while the country would seek to join the EU “as soon as possible”.

Elsewhere, the document admits “some checks would be required on some goods going between Scotland, as an EU member state, and the rest of the UK, outwith the EU”. The paper says the Scottish Government would establish a new government service to manage this.

It says Scotland would seek discussions with Nato leaders with a view to joining as soon as possible, but would also “pursue negotiations” over the removal of nuclear weapons from its soil.

Reaction to the independence paper

Scottish Conservative deputy leader Rachael Hamilton said: “John Swinney’s launch of yet another fantasy paper on the SNP’s independence obsession shows how out of touch he is with ordinary Scots.

“On his watch, Scotland’s NHS is on life support, school discipline has collapsed, our roads are crumbling and household bills are soaring, yet his priority is breaking up the UK.

“The public expect the First Minister to focus on fixing the mess the SNP have created. But, as always, he’s distracted from the day job by his life’s obsession.

“Our message is simple: move on John. Independence would make Scotland poorer and everyone would suffer the consequences of the SNP’s economic sabotage. The SNP have spent a decade taxing ambitious and aspirational Scots to the hilt. If they want to make people better off, they should do it now and cut bills.”

Scottish Labour deputy Leader Jackie Baillie said "We haven't reached the limits of devolution, but we have reached the limits of this unambitious and tired SNP government.

"The SNP has control of our NHS, our education system, our housing system, our transport system, our justice system and more - they are just being held back by their own incompetence.

"John Swinney has admitted his government has nothing else to offer the people of Scotland - but Scottish Labour has the fresh ideas and ambition Scotland needs."

Alastair Cameron, chair of the pro-UK campaign group Scotland in Union, described the document as “yet another re-hashed wishlist”.