Michael Settle | The Herald
THE government of an independent Scotland would have to raise taxes or cut services to maintain welfare pay-ments, Iain Duncan Smith said as he defended his Universal Credit plan, which he said would make 100,000 Scots better off.

As the Coalition came under fire for considering linking hikes in benefit payments to average pay rather than inflation, the Work and Pensions Secretary – in Glasgow for a welfare reform conference – defended his plan to replace a string of benefits with a single payout called Universal Credit, stressing how “only the Union could offer this sort of wholesale reform”.
He said: “Due to the reliance on the old heavy industries in many parts of the country, it makes perfect sense that we need to spend more money per head of population on welfare support in Scotland; I have no problem with that.
“In fact, I am glad that we are in a position to do it. Thankfully, due to the United Kingdom and the commitment of the Westminster Government, we are able to ensure that money brought in whether it be from the City of London or from North Sea oil can be pooled and directed to wherever it is needed most. That is what being in the United Kingdom is all about.
“If the unthinkable were to happen, a Scottish Government would face a very stark choice of raising taxes or cutting services.”



