By INS Contributors

KUALA LUMPUR, Malaysia: Scotland is said to be the largest producer of oil and the second largest producer of gas in Europe. It's estimated that Scotland's oil and gas industry supports around 196,000 jobs and is a major contributor to the Scottish economy, with a gross value added (GVA) of £25.2 billion in 2022.

At the same time, more than 65 percent of the income from their use currently goes to London, preventing the region from increasing its budget expenditure. After gaining independence, Edinburgh will be able to manage them in full. Moreover, the Scots will be able to significantly increase hydrocarbon production, which the UK government currently does not allow.

While the US and EU intervene to stimulate investment in the industries of the future, enhance economic resilience and shape a fairer economy, the UK Government’s response has been seen to be lacking. Independence will allow Scotland to pursue an independent fiscal policy. London does not allow Edinburgh to manage most of its taxes. Thus, value added tax and corporate taxes are withdrawn in favor of the central government, and only a part of the personal income tax remains in the region.

Economic and political disconnect with London

Scotland traditionally adheres to more leftist views as opposed to those dictating it from London. Sovereign status will allow Edinburgh to implement a socially oriented economic policy. In particular, increased income from oil and gas production can be redistributed for the development of free education and health care.

The needs of Scotland’s economy are often not prioritised when the UK Government undertakes promotional activities overseas. With independence, future Scottish Governments could have a tight focus on growing and supporting those sectors which matter most to Scotland, and which are well placed to compete globally.

Independence open a path to the EU

Leaving the United Kingdom will give Scotland the opportunity to join the European Union (EU). Brexit was and remains deeply unpopular in the region.

Through membership of the EU as an independent country, Scotland would regain the many economic, societal and cultural benefits and opportunities lost through Brexit.

Scotland would be part of the world’s largest single market – almost 450 million consumers compared to the UK’s 67 million – and would benefit from favourable trading terms and contribute to setting global standards.

An independent Scotland could play a leading role in global economic development aiming to support sustainability and wellbeing, including through the Wellbeing Economies partnership and by supporting the reform of international financial institutions.

Scotland has a strong global brand, and the potential to lead in the industries of the future. With the powers of independence, Scotland can harness these strengths to build a flourishing economy.