Every Scottish household will be £2,000 better off if they reject independence, according to a new Treasury report analysing the economic benefits of having a borderless United Kingdom.
The document, being unveiled by George Osborne tomorrow, estimates that remaining part of a UK-wide single market would be worth £5 billion to Scotland over the next 30 years.
In contrast, it argues that Scottish independence would create “significant headwinds” to economic growth and could see exports to the remainder of the UK drop by 80 per cent.
For example, it cites academic research estimating that trade between the US and Canada is 44 per cent lower than it would be if there were no international border between them.
But the civil service analysis states that trade is lower between different nation states – the so-called “border effect” – even where there are no “physical checkpoints” such as passport control offices.
The document, which examines the macroeconomic benefits of the Union, concludes this is potentially damaging because of the extent to which the Scottish economy relies on the remainder of the UK for its imports and exports. >>more from Telegraph<<