SCOTS could face large tax hikes if Scotland becomes independent, a research paper has warned.
The TaxPayers’ Alliance said an independent Scotland would have the highest deficit in Europe if it were to quit the UK. This would force the Scottish Government to raise taxes and cut public spending, the research paper warned.
The paper claimed an independent Scotland would need to raise the basic rate of income tax to 46 pence in the pound to pay for its current level of spending.
Policy officials said the current rate of Scottish spending is £11,247, which is 20 percent higher than England, and could not be supported without huge tax rises, or a significant reduction in public spending.
The lobby group predicted the Scottish Parliament would need to increase taxes by at least 10 per cent of GDP to balance the books and raise VAT to 49 per cent.