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Scottish finances: Stewart Hosie and Alistair Darling

19 November 2012 Last updated at 14:29 GMT

An independent Scotland relying on the "volatile" pricing and income from oil would have some "pretty tough choices to make" on tax and spending said former Chancellor Alastair Darling.

The SNP's Stewart Hosie said an independent Scotland "would have the levers and tools to tackle challenges head on". He said the UK government had wasted the first 35 years of oil money, but his party would invest money to "restructure the economy" of Scotland.

They spoke after an Institute for Fiscal Studies report looked at how a separate Scotland would pay for its public services and balance its budget, after the referendum on independence in 2014.

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