17 March 2008
SCOTLAND has the potential to become one of the most successful economies in the world, a report by an independent think-tank claims today.
Reform Scotland, a right-of-centre research body, said that with the right framework for growth in place – based on lower taxes, smaller government and more financial control – the country could become an international leader, increasing prosperity and raising living standards for Scots.
However, reaching that goal will require an average growth rate of 3.5 per cent over a period of ten to 12 years, according to research carried out by Reform Scotland. Over the past 30 years, Scotland\’s annual average growth rate was 1.8 per cent.
In its report, Powers for Growth, the think-tank makes four broad recommendations to improve Scotland\’s economic performance:
- A lower overall tax burden
- A more limited government
- Greater fiscal autonomy
- Better statistical information.
Ben Thomson, chairman of Reform Scotland, said: "The report shows that lowering the overall tax burden and reducing the size of government have a positive impact on economic growth. We would therefore urge all political parties to adopt policies which would deliver these outcomes and bring benefits to the Scottish economy."