IFS predicts £5.9bn public spending cuts under independence

Spending on some public services could be cut by close to a third under independence, according to a report by economic researchers.

One scenario could see cuts of £5.9 billion in 2016-17 and 2017-18, researchers said.

If spending on health and education is protected, other services could be cut by almost a third compared with present spending levels.

The findings are contained in a new report by the Institute for Fiscal Studies that looks at spending on public services and taxation in the context of the 2014 referendum.

The research found that an independent Scotland would face about £2.5bn cuts for 2016/17 and 2018/19 if its Government were to follow the course currently set out by the UK Government.

The country could also face an additional £3.4bn budget black hole, under Office for Budget Responsibility projections regarding North Sea oil revenues.

Such a £5.9bn total fiscal consolidation would amount to a cut of around 15%, the research found.