The McCrone report is a document on the Scottish economy written and researched in 1974 on behalf of the British Government. It was composed by Professor Gavin McCrone employed at the Scottish Office using some information that was publicly available at the time and some that was not. The document gave a favourable projection for the economy of an independent Scotland with a "chronic surplus to a quite embarrassing degree and its currency would become the hardest in Europe". It also noted that the Common Market or EEC meant that Scotland could pivot away from the rest of UK (if required) for trade. The memo from UK Civil Servants to UK Government ministers was classified “secret”; some have argued that this was to avoid fuelling independence sentiment in Scotland. The report became public in 2005 when new freedom of information legislation came into effect. [1] [2]
The eighteen-page report focused on the likely effects of North Sea oil revenue on the economic viability of an independent Scotland. The report stated:
The document was completed during the latter part of Edward Heath's Conservative government in 1974, just prior to the February 1974 general election. This election produced a 'hung parliament' with Harold Wilson of the Labour Party as Prime Minister. Another general election was called for October 1974, which gave Labour a slim majority in Westminster. The Scottish National Party recorded 30% of the Scottish vote in the October election, their best ever result at that time.
The report came to light in 2005 when the SNP obtained several UK Government papers under the Freedom of Information Act 2000. The full provisions of the Act came into force on 1 January 2005. [4]
UK oil production peaked in 1999 and had declined 67% by 2012, [5] but petroleum still contributed £35bn to the UK balance of payments in 2011. [6] The UK government took an estimated £6,530m in direct petroleum taxes in 2012-13 [7] plus £6bn in income tax, national insurance and corporation tax from supply companies in 2011-12. [6] As of 2012, around 45% of UK oil & gas employees were located in Scotland. [6] The North Sea oil and gas industry as a whole contributed £35 billion to the UK Treasury in 2014. [8]
In his evidence to the Lords Committee on the Economic Implications of Scottish Independence in 2012, Professor McCrone stated that Scotland's GDP would increase by around 20% if North Sea oil were counted as part of it. [9]
In an interview for Holyrood Magazine on 19 May 2013, ex-Labour chancellor Denis Healey (who served in the Cabinet at the time the McCrone Report was submitted) stated: "I think we did underplay the value of the oil to the country because of the threat of [Scottish] nationalism... I think they [Westminster politicians] are concerned about Scotland taking the oil, I think they are worried stiff about it." [10]
The Scottish National Party is a social democratic political party in Scotland. The party holds 63 of the 129 seats in the Scottish Parliament and 43 out of the 59 Scottish seats in the House of Commons in Westminster It has 453 local councillors of 1,227.
The Scottish Parliament is the devolved, unicameral legislature of Scotland. Located in the Holyrood area of the capital city, Edinburgh, it is frequently referred to by the metonym Holyrood. The Parliament is a democratically elected body comprising 129 members known as Members of the Scottish Parliament (MSPs), elected for five-year terms under the additional member system: 73 MSPs represent individual geographical constituencies elected by the plurality (first-past-the-post) system, while a further 56 are returned as list members from eight additional member regions. Each region elects seven party-list MSPs. Each region elects 15 to 17 MSPs in total. The most recent general election to the Parliament was held on 6 May 2021, with the Scottish National Party winning a plurality.
Scottish independence is the notion of Scotland as a sovereign state, independent from the United Kingdom, and refers to the political movement that is campaigning to bring it about.
The February 1974 United Kingdom general election was held on Thursday 28 February 1974. The Labour Party, led by Leader of the Opposition and former Prime Minister Harold Wilson, gained 14 seats but was seventeen short of an overall majority. The Conservative Party, led by incumbent Prime Minister Edward Heath, lost 28 seats. That resulted in a hung parliament, the first since 1929. Heath sought a coalition with the Liberals, but the two parties failed to come to an agreement and so Wilson became Prime Minister for a second time, his first with a minority government. Wilson called another early election in September, which was held in October and resulted in a Labour majority. The February election was also the first general election to be held with the United Kingdom as a member state of the European Communities (EC), which was widely known as the "Common Market".
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The National Energy Program was an energy policy of the Canadian federal government from 1980 to 1985. The economically nationalist policy sought to secure Canadian energy independence, though was strongly opposed by the private sector and the oil-producing Western Canadian provinces, most notably Alberta.
Henry Baird McLeish is a Scottish politician, author, academic and former professional footballer who served as First Minister of Scotland from 2000 to 2001. With a term of just 1 year and 12 days, he is the shortest serving holder of that office. He served as the Leader of the Labour Party in Scotland from 2000 to 2001.
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Petroleum Revenue Tax (PRT) is a direct tax collected in the United Kingdom. It was introduced under the Oil Taxation Act 1975, soon after Harold Wilson's Labour government returned to power and in the immediate aftermath of the 1973 energy crisis, and was intended to ensure "fairer share of profits for the nation" from the exploitation of the UK's continental shelf, while ensuring a "suitable return" on the capital investment by oil companies.
Sir Daniel Grian Alexander is a former politician who was Chief Secretary to the Treasury between 2010 and 2015. He was the Member of Parliament (MP) for the Inverness, Nairn, Badenoch & Strathspey constituency from 2005 until the general election in May 2015. In his first parliamentary term (2005–2010), Alexander was the Liberal Democrat spokesperson for Work and Pensions (2007–2008), the Chief of Staff to party leader Nick Clegg, and Chair of the Liberal Democrat Manifesto Group (2007–2010).
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"It's Scotland's oil" was a widely publicised political slogan used by the Scottish National Party (SNP) during the 1970s in making their economic case for Scottish independence. It was argued that the discovery of North Sea oil off the coast of Scotland, and the revenue that it created, would not benefit Scotland to any significant degree while Scotland remained part of the United Kingdom. The SNP campaigned widely in both the February 1974 UK General Election and subsequent October 1974 UK General Election using this slogan. At the February election the SNP gained seven seats in the House of Commons and 22% of the Scottish vote, rising to eleven seats and 30% of the vote in the October election. The idea behind the slogan has proven to be controversial in discussions surrounding the financial viability of an independent Scottish state and still resonates to this day.
Tullow Oil plc is a multinational oil and gas exploration company founded in Tullow, Ireland, with its headquarters in London, United Kingdom. The company is listed on the London Stock Exchange.
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Devolution is the process in which the central British parliament grants administrative powers to the devolved Scottish Parliament. Prior to the advent of devolution, some had argued for a Scottish Parliament within the United Kingdom – while others have since advocated for complete independence. The people of Scotland first got the opportunity to vote in a referendum on proposals for devolution in 1979 and, although a majority of those voting voted 'Yes', the referendum legislation also required 40% of the electorate to vote 'Yes' for the plans to be enacted and this was not achieved. A second referendum opportunity in 1997, this time on a strong proposal, resulted in an overwhelming 'Yes' victory, leading to the Scotland Act 1998 being passed and the Scottish Parliament being established in 1999.
The 2016 Scottish parliament election was held on Thursday, 5 May 2016 to elect 129 members to the Scottish Parliament. It was the fifth election held since the devolved parliament was established in 1999. It was the first parliamentary election in Scotland in which 16 and 17 year olds were eligible to vote, under the provisions of the Scottish Elections Act. It was also the first time the three largest parties were led by women.
Government Expenditure and Revenue Scotland (GERS) is an annual estimate of the level of public revenue raised in Scotland and the level of public spending for the residents of Scotland under current constitutional arrangements. It was first published in 1992, and yearly since 1995, with the exceptions of 2007 where there was no report due to a methodology review, and 2016 where there were two annual reports due to an acceleration of publishing timescale.
The Smith Commission was announced by Prime Minister David Cameron on 19 September 2014 in the wake of the 'No' vote in the 2014 Scottish independence referendum. The establishment of the commission was part of the process of fulfilling The Vow made by the leaders of the three main unionist parties during the last days of the referendum campaign. The Vow promised the devolution of more powers from the Parliament of the United Kingdom to the Scottish Parliament in the event of a No vote.
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