Scottish independence referendum: Personal finance pack launched
2 Jun 2014 03:44 PM
Latest In the Know
factsheet highlights how the UK helps safeguard the finances of Scottish
people.
The key ways the UK helps
safeguard the personal finances of people in Scotland are highlighted in the
latest UK Government In the Know
pack, which is launched today.
In the
Know focuses on household bills including the everyday things we need
and essentials like energy, mortgage bills, pensions and savings, setting out
the full facts about the effect an independent Scotland could have on household
budgets.
Visit the Scottish
independence referendum page for more information
This follows on from last week’s
report from the UK Treasury that said that every Scot would be
£1,400 better off every year living in a united kingdom.
Here’s what staying in the
Union means for Scottish household budgets and savings:
- £2,000 – how much
tax-free childcare support per child that the UK Government is making available
to working parents from autumn 2015
- £1,700 – how much
mortgage interest costs could rise by in an independent Scotland, on the first
year of repayments alone, for a 75% loan-to-value mortgage on the average
Scottish house
- Up to £189 – how
much lower future energy bills are kept for Scottish households each year, as
part of the UK
- £11 – how much
cheaper it is to fill up the average car, following the UK Government’s
freeze on fuel duty
- £10,500 – by
2015/16, you’ll be able to earn this amount before paying income tax, and
since 2010 over 260,000 Scottish workers have been lifted out of income tax
altogether
- £15,000 – from July
2014, you can save this amount tax-free in a UK ISA
- 51% – the percentage of
Scottish customers who buy their mortgages from firms in the rest of the
UK
- 70% - the percentage of Scottish
consumers who buy their private pensions from firms in the rest of the
UK
Chief Secretary to the Treasury
Danny Alexander said:
I am determined that people have
access to the full facts needed to make one of the most important decisions in
Scottish history. People are rightly concerned about how their families’
finances could be affected by independence.
That’s why we’re
publishing ‘In the Know’ which sets out for families how essential
costs like housing and energy bills are kept lower in the UK.
The pack sets out five key
things that show how Scotland’s finances are stronger as part of the
United Kingdom.
-
We keep the pound, one of the
world’s strongest and most stable currencies giving us more certainty on
the value of our savings, power to purchase the everyday things we need, as
well as underpinning our jobs, our mortgages and savings
-
We have a larger, more stable
economy, which means the UK can borrow money more cheaply. This helps keep your
mortgage and loan interest rates lower. The National Institute of Economic and
Social Research concluded that an independent Scotland would be likely to face
higher interest rates on its borrowing - up to 1.65% higher than the rest of
the UK. Because the UK’s interest rates are lower, borrowing costs passed
on to your mortgage are also lower
-
We are stronger together. The
United Kingdom economy is the sixth largest in the world, and is set to recover
faster than any other G7 nation. Our collective size, strength and diversity
allow us to grow and succeed together, and help us to protect jobs in difficult
times. For example, in the financial crisis in 2008, the UK Government was able
to provide Scottish banks with support worth more than twice Scotland’s
national income
-
We share vital public services.
Scotland benefits from over 200 United Kingdom institutions and services,
including the BBC, Her Majesty’s Passport Office, the National Lottery,
the DVLA and the Post Office. It costs us all the same amount of money to use
the vast majority of these services, wherever we live
-
We have safe savings and
pensions. With Scotland in the UK, our savings are protected by a guarantee
covering deposits of up to £85,000 in any UK bank or building society. We
also have greater choice and security when it comes to retirement. The state
pension is paid at the same level across the UK, and the costs are shared by
the UK’s 31 million taxpayers