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| Scotland decides: Yes campaign feels the heat as Salmond’s NHS claims come under furious attack | |
| (about 11 hours later) | |
| Alex Salmond’s vote-winning claim that only leaving the Union could save the NHS in Scotland was in danger of unravelling on Thurday night as key arguments of the Yes campaign came under sustained attack from leading economists and business leaders. | Alex Salmond’s vote-winning claim that only leaving the Union could save the NHS in Scotland was in danger of unravelling on Thurday night as key arguments of the Yes campaign came under sustained attack from leading economists and business leaders. |
| Research published by the influential Institute for Fiscal Studies think tank found that the devolved Holyrood government currently spent less on the health service in real terms than its English equivalent - undermining Mr Salmond’s claim that Westminster government posed a threat to the NHS. | Research published by the influential Institute for Fiscal Studies think tank found that the devolved Holyrood government currently spent less on the health service in real terms than its English equivalent - undermining Mr Salmond’s claim that Westminster government posed a threat to the NHS. |
| “It is hard to see how independence could allow Scotland to spend more on the NHS than would be possible within a Union where it will have significant tax raising powers and considerable say over spending priorities,” the authors concluded. | “It is hard to see how independence could allow Scotland to spend more on the NHS than would be possible within a Union where it will have significant tax raising powers and considerable say over spending priorities,” the authors concluded. |
| “A combination of the eventual fall in oil revenues and an ageing population could make for a tougher fiscal outlook for Scotland than the rest of the UK and hence less room for additional spending on things like the NHS.” | “A combination of the eventual fall in oil revenues and an ageing population could make for a tougher fiscal outlook for Scotland than the rest of the UK and hence less room for additional spending on things like the NHS.” |
| The findings came as Gordon Brown, the former prime minister, announced he was considering standing as an MSP in the next Holyrood elections to challenge the SNP’s “lies” that the existing Scottish Parliament did not have the powers to improve the NHS. | The findings came as Gordon Brown, the former prime minister, announced he was considering standing as an MSP in the next Holyrood elections to challenge the SNP’s “lies” that the existing Scottish Parliament did not have the powers to improve the NHS. |
| On another difficult day for the Yes campaign, whose narrow poll lead has been eroded in recent days, the governor of the Bank of England, Mark Carney, also made clear that an independent Scotland would need huge reserves if it tried to continue using sterling. | On another difficult day for the Yes campaign, whose narrow poll lead has been eroded in recent days, the governor of the Bank of England, Mark Carney, also made clear that an independent Scotland would need huge reserves if it tried to continue using sterling. |
| In a letter to the Treasury select committee following his evidence to MPs on Wednesday, the governor said Scotland would need to build up tens of billions of pounds in currency stockpiles to if it did not have a formal currency agreement with the rest of the UK, on the basis of comparisons with similar countries like Denmark and Hong Kong. | In a letter to the Treasury select committee following his evidence to MPs on Wednesday, the governor said Scotland would need to build up tens of billions of pounds in currency stockpiles to if it did not have a formal currency agreement with the rest of the UK, on the basis of comparisons with similar countries like Denmark and Hong Kong. |
| “The Governor’s letter demonstrates that, whatever currency arrangement is chosen, a separate Scotland would require huge reserves,” committee chairman Andrew Tyrie said yesterday. “Scotland would need a multiple of that. The comparisons with Denmark and Hong Kong in the governor’s note say it all.” | “The Governor’s letter demonstrates that, whatever currency arrangement is chosen, a separate Scotland would require huge reserves,” committee chairman Andrew Tyrie said yesterday. “Scotland would need a multiple of that. The comparisons with Denmark and Hong Kong in the governor’s note say it all.” |
| Mr Tyrie added: “Scotland’s ability to borrow would be heavily restricted. Obtaining the reserves would mean much higher taxes or lower spending, or both, for years to come. | Mr Tyrie added: “Scotland’s ability to borrow would be heavily restricted. Obtaining the reserves would mean much higher taxes or lower spending, or both, for years to come. |
| Separately, announcements by leading Scottish firms, including RBS, that were would their registered headquarters out of Scotland in the event of a Yes vote inthe referendum, led to a bitter war of words between the SNP and both the Treasury and the BBC, as the information was reported by the corporation ahead of the official market statement. | |
| Last night Mr Salmond wrote to the Prime Minister and Cabinet Secretary Sir Jeremy Heywood demanding an explanation for what he claimed was the Treasury’s “deliberate attempt to cause uncertainty in the financial markets”. | Last night Mr Salmond wrote to the Prime Minister and Cabinet Secretary Sir Jeremy Heywood demanding an explanation for what he claimed was the Treasury’s “deliberate attempt to cause uncertainty in the financial markets”. |
| In his letter to Mr Cameron, Mr Salmond said: “While you were in Edinburgh yesterday telling the people of Scotland that you love them, behind the scenes your business adviser has been desperately phoning round businesses trying to get companies to make statements against independence, and your Treasury has been involved in trying to destabilise financial services in Scotland - all in an attempt to frighten voters in Scotland.” | In his letter to Mr Cameron, Mr Salmond said: “While you were in Edinburgh yesterday telling the people of Scotland that you love them, behind the scenes your business adviser has been desperately phoning round businesses trying to get companies to make statements against independence, and your Treasury has been involved in trying to destabilise financial services in Scotland - all in an attempt to frighten voters in Scotland.” |
| Chief Secretary to the Treasury Danny Alexander responded: “Alex Salmond’s attempts to dismiss these announcements are extraordinary from a responsible politician. Instead he should reflect on the damage that his cause of separation would do to jobs, prosperity and living standards in Scotland. Unlike Mr Salmond, most people in Scotland will understand that this matters and vote No next Thursday.” | Chief Secretary to the Treasury Danny Alexander responded: “Alex Salmond’s attempts to dismiss these announcements are extraordinary from a responsible politician. Instead he should reflect on the damage that his cause of separation would do to jobs, prosperity and living standards in Scotland. Unlike Mr Salmond, most people in Scotland will understand that this matters and vote No next Thursday.” |
| Better Together leader Alistair Darling said: “A flood of banks and financial institutions are now saying that if there is a Yes vote then they will have to move business out of Scotland and, in the case of RBS, their headquarters. All Alex Salmond can do is shrug his shoulders and say it doesn’t matter.” | Better Together leader Alistair Darling said: “A flood of banks and financial institutions are now saying that if there is a Yes vote then they will have to move business out of Scotland and, in the case of RBS, their headquarters. All Alex Salmond can do is shrug his shoulders and say it doesn’t matter.” |
| Alex Salmond and the nationalists reject claims that Scotland's economy would suffer if the UK broke up (EPA) The Yes campaign’s decision to put the future of the NHS at the heart of its appeal to voters – saying only exit from the United Kingdom would protect the original public service identity of the NHS against creeping privatisation and austerity cuts - was seen as the critical policy which swung recent polls towards Yes. | Alex Salmond and the nationalists reject claims that Scotland's economy would suffer if the UK broke up (EPA) The Yes campaign’s decision to put the future of the NHS at the heart of its appeal to voters – saying only exit from the United Kingdom would protect the original public service identity of the NHS against creeping privatisation and austerity cuts - was seen as the critical policy which swung recent polls towards Yes. |
| However the new IFS analysis shows that spending over the last four years in England on the NHS has risen four percent, despite budgets in other government departments being slashed overall by 13 percent. Although Holyrood has control over NHS spending through Scotland’s share of overall UK public spending, spending on the health service north of the border over the same period was shown to have fallen by one percent. | However the new IFS analysis shows that spending over the last four years in England on the NHS has risen four percent, despite budgets in other government departments being slashed overall by 13 percent. Although Holyrood has control over NHS spending through Scotland’s share of overall UK public spending, spending on the health service north of the border over the same period was shown to have fallen by one percent. |
| Mr Salmond and his economic advisers have repeatedly argued that although they have devolved power over the NHS in Scotland, they have no control over how much the Treasury sends north, and that austerity cuts in England would therefore have a damaging effect on future NHS spending in Scotland. | Mr Salmond and his economic advisers have repeatedly argued that although they have devolved power over the NHS in Scotland, they have no control over how much the Treasury sends north, and that austerity cuts in England would therefore have a damaging effect on future NHS spending in Scotland. |