SNP's fiscal autonomy would leave £9bn gap in Scotland's finances, says IFS

Scottish Labour accuses Nicola Sturgeon of planning spending cuts 'to make the Tories blush' after thinktank updates projections on flagship policy

The Scottish National party's flagship financial policy of full fiscal autonomy could lead to a shortfall of nearly 9bn in Scotland's finances by 2020, according to the latest projections from the Institute of Fiscal Studies - a gap that would only be closed if growth were to double that predicted for the UK as a whole.

The IFS published its report on Tuesday after the SNP leader, Nicola Sturgeon, dismissed as irrelevant the institute's previous projection of a 7.6bn shortfall for 2015-16 under the policy, which would require Scotland to fully fund spending through its own tax revenues and borrowing.

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