Independent Scotland 'could not walk away from UK debt'

Professor David Bell, a senior economist from the University of Sterling, said it was ?not really the best time? for the Nationalists to hold the referendum as the economic downturn means a separate Scotland would start life with a much larger debt.

Speaking alongside Mr Armstrong at a conference in Edinburgh, he said the UK?s national debt was projected to increase from 40 per cent of GDP in 2004 to 110 per cent next year.

This would equate to mean a separate Scotland facing ?significant ongoing debt servicing costs? of around ?4.1 billion per year.

Prof Gavin McCrone, the former chief economist to the Scottish Office, rejected Mr Salmond?s claim of a new North Sea oil boom, telling the conference: ?Output may go up for a little bit for a while but gradually it will decline.?

Meanwhile, the Scottish Government published figures showing the First Minister?s promised 3p cut in corporation tax after independence would lead to a ?385 million drop in revenue.

Willie Rennie, the Scottish Liberal Democrat leader, said economic modelling shows this would mean cutting 7,500 public sector jobs.

Source: http://telegraph.feedsportal.com/c/32726/f/579309/s/2cdae286/l/0L0Stelegraph0O0Cnews0Cuknews0Cscotland0C10A0A994790CIndependent0EScotland0Ecould0Enot0Ewalk0Eaway0Efrom0EUK0Edebt0Bhtml/story01.htm

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