Government debt

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FOR THE UNION FOR INDEPENDENCE
Servicing costs

In May 2014, UK Public Sector Net Debt stood at £1.284 trillion. David Bell, Professor of Economics at Stirling University, says[1] that the need to service and roll over Scotland's share of this debt would make it difficult for the Government to increase public spending until it could demonstrate to the markets that it could control its debts. Otherwise, interest rates on Scottish debt would rise above UK levels and potentially to unsustainable levels, forcing cuts in public spending and/or increases in taxes that would likely hurt growth.

References

  1. Scotland's Decision: 16 questions (Jeffery & Perman, ed) Question 1 by David Bell (Birlinn)

Servicing costs

References