The most significant outcome of all of this is the decline in a potential for employment. Full employment in the UK, as envisaged by some parties is not a realistic option. In comparison with the rest of the UK, Scotland performs relatively well, due to its inherent advantages of huge natural resources and small population. The growth rate of the material standard of living is initially slightly higher, though it starts from a lower base. If current government policies were pursued, the authors advise that the sudden access to oil and gas revenues would stimulate the Scottish economy to such an extent that the rate of recovery would be too great to be maintained, and after 10 years the country would be plunged back into the red.
Tax rates decline markedly.
Short term sustainability rises. From the above, it is possible to concluded that from an economic point of view, there is no reason why an Independent Scotland should not prosper if properly governed - ie. The question of what policies would be most suitable for an Independent Scotland, and just how successful an independent Scotland would be are addressed by the second report - Searching For A Sustainable Scotland. A zero public sector borrowing requirement. Enhanced measures of environmental conservation to at least match the targets set by the Royal Commission on Environmental pollution.