Taxes may have to be raised to pay for benefits for older people if Scotland gets new controls over welfare, a report has warned.
Economics expert Professor David Bell said consistent economic growth would be needed to pay for benefits for older people “if increases in the tax burden were to be avoided”.
Professor Bell issued the warning in a new paper looking at spending on welfare in Scotland.
In his paper, the Stirling University professor said: “If Scotland acquires new fiscal responsibilities, including control over welfare benefits, there will be a need to raise revenues to meet the increased costs of state pensions.
“These will have to be derived from the economic activity of the working-age population.”