Nicola Sturgeon has unveiled a paper outlining the economic argument for Scotland leaving the UK. Here are some of the key points she raised:

• Scotland would continue to use the pound before moving to a new currency "when the time is right" and look to join the European Union
• Independence offers an optimistic alternative away from what she called the failing UK economic model
• The FM insisted an independent Scotland would have a stronger and fairer economy
• It would have a redesigned energy market which would aim to provide secure and reliable low-cost energy
• Using remaining oil revenues and borrowing powers to create a £20bn major infrastructure investment created through the Building a New Scotland Fund
• Scottish independence would also open the door to Scotland joining the EU
• It would free movement of people, without a passport, across the UK and Ireland, with trade borders implemented smoothly

• Border arrangements would be required for trade of goods and services across the UK, but this is "not insurmountable"
• She explained "proper planning" would be required to get technology in place so as ''not to disrupt trade"
• However, the FM said it was "nonsense" to suggest people north of the border would need a passport to travel to England

That's all from the live page team today. Thanks for joining us.

Chancellor's U-turns mean less money for Holyroodpublished at 13:46 British Summer Time 17 October 2022

13:46 BST 17 October 2022

Philip Sim
BBC Scotland political correspondent

First Minister Nicola Sturgeon has welcomed the chancellor’s U-turns, while hitting out at opponents who suggested she should mirror the tax cuts.

But it does mean less money for Holyrood than had been expected. Because income tax is devolved, a giveaway to taxpayers in England and Wales would have triggered extra cash for Holyrood.

Scottish ministers could have passed that on in tax cuts of their own, or spent on public services. That would have amounted to £460m under the original mini-budget plans – money which will no longer be forthcoming, now that the whole plan has been junked.

The stamp duty cut will still see £170m extra coming to Holyrood spread over the next three years – but that is dwarfed by the £1.7bn Scottish ministers say has been shaved off their budget by inflation.

Image source, Getty Images

ITV Border's political editor Peter MacMahon highlights a section of the paper about a a trade border.

It says it would be created by Scotland's membership of the EU, requiring physical checks on the two main trunk roads between England and Scotland and at rail freight terminals.

He asks the first minister to confirm exactly where the checks would take place and how smuggling would be avoided on the 24 other crossing points along a 154km border.

The first minister replies that further details will be published in a future paper.

She says that with proper planning it will be possible to carry out checks on goods without disrupting trade.

Ms Sturgeon also says that the benefits of being in the EU would "outweigh" any challenges faced.

Before the 2014 referendum, the Scottish government put out a prospectus about its vision for an independent Scotland , external

As it pushes for another referendum, it is now revisiting that case. Today's paper on economics, external is the third in the Scottish government's Building a New Scotland series aimed at setting out this new prospectus for independence.

The first paper Wealthier, happier, fairer: why not Scotland?, external Looked at other smaller countries around the world compared to the UK

The second briefing Renewing Democracy through Independence, external focused on the Scottish government's views on the right of self-determination.

There are further papers planned in the months ahead.

A lot of questions still to answerpublished at 13:25 British Summer Time 17 October 2022

13:25 BST 17 October 2022

Philip Sim
BBC Scotland political correspondent

The Q&A at Bute House has underlined that there are a lot of questions that still need to be answered – and indeed which cannot yet be answered.

This is in part because the latest paper has raised issues which are to be addressed in future publications, including one on how an independent Scotland would join the EU. But it is also because a lot of practical issues would need to be thrashed out with the remaining UK state as part of post-referendum negotiations.

This includes how to divvy up assets and debts – including, significantly, those pertaining to pensions – as well as how borders with the rest of the UK would work.

Ms Sturgeon is keen to set out as detailed a platform as possible, but it still comes with inherent uncertainties.

Her hope will be that it is still a more compelling vision for the future than the certainties we have about the way the UK works now.

STV's Ewan Petrie asks who will take on the liability for paying pensions.

"The Scottish government will be responsible for paying the pensions of those with state pensions in an independent Scotland," replies the first minister

She explains there will be negotiations about accumulated assets and debt.

"We will set out more detail on pensions, which will cover the state pension and also the arrangements for private pensions, later in this series."

Continuing to answer the question from James Cook, Ms Sturgeon says that the current estimate from the Institute of Fiscal Studies is that the next Gers publication would show a deficit similar to the UK's - or potentially lower.

The first minister concedes this is tied to the current oil price, but says that would bring about a choice.

"If we take that windfall opportunity to invest in infrastructure, not only can we accelerate the transition to net zero but we can kickstart the kind of growth that helps us much more than making cuts or increasing taxes would do to grow the economy, and over the medium-term get our finances onto a sustainable path," she says.

Ms Sturgeon adds that oil revenues would be taken out of day-to-day spending, which would operate within fiscal rules and deliver budget balance over a period of time.

She says this would not be an "easy path" but was a "sensible approach" consistent with Scotland's values.

The BBC's James Cook challenges the first minister over a "huge gap" between tax revenue and public spending in the paper.

He asks if the first few years, or even decades, of an independent Scotland would require tax rises, spending cuts, expensive borrowing - or a combination of all of these.

Ms Sturgeon answers that she had referenced a need for borrowing in the "early years", saying that this would be in common with many other governments in developed countries, who used loans for investment or to cover gaps between spending and revenue.

Sending the right signals to the marketspublished at 13:05 British Summer Time 17 October 2022

13:05 BST 17 October 2022

Philip Sim
BBC Scotland political correspondent

Ms Sturgeon says there would need to be negotiations over what debts and liabilities the new Scottish state would take on.

However, the paper states that the starting position is that Scotland would not inherit any of the UK’s debt stock, instead agreeing to service a share of the national debt via an annual “solidarity payment”.

This is again familiar from the Growth Commission, which actually set a figure of around £5bn per year; there is no specific figure in the new paper, which says it would be subject to negotiation.

There is a practical side to this “solidarity” too – the hope is that showing good faith in this way would reduce any premium on the price the markets charge the new Scottish state to borrow.

Prime Minister Liz Truss has just discovered the power of the markets, and how valuable the trust of financial investors can be. Ms Sturgeon’s government may be looking to learn from that by sending the right signals from day one.

The first question from journalists comes from BBC Scotland's Lyndsey Bews, who asks the first minister if she accepts there is still a good deal of uncertainty, with much of the detail in the paper subject to negotiations - for example, EU membership.

Ms Sturgeon answers that she does accept that, saying she will continue to provide information and updates as circumstances change.

She says that a paper devoted to European Union membership would be published, but believes that negotiations with the EU would not be "lengthy".

"Nobody with any credibility seriously suggests that Scotland would not be welcomed back into the EU," she says.

But the first minister adds that she would be candid with people as there is an "inherent uncertainty" in the future which no country could answer definitively.

Most of Scotland's trade with the rest of the UK is in service and plans will be set out to maintain this, Ms Sturgeon tells the press conference.

Scotland exports more manufactured goods to the rest of the world than to the UK, she says, but the paper sets out the mechanisms by which smooth trade can continue.

The first minister encourages everyone with an interest to read today's paper at gov.scot/newscotland.

"There can't be many, if any, who look at Westminster now and think that this is as good as it gets."

Can we do better asks the first minister and she replies to her own question with an emphatic answer, that being yes.

"Scotland will remain in the Common Travel Area, with the rest of the UK and Ireland," Ms Sturgeon says.

"That means any talk of passports to visit relatives in England is utter nonsense."

An independent Scotland back in the EU will also regain free movement across 27 other countries, adds the first minister.

What Brexit does mean is that when Scotland returns to the EU "border arrangements will be required to ensure continued trade in goods and services across the UK".

"None of this, none of this is insurmountable, but it does require proper planning."

Ms Sturgeon turns to the issues of borders and trade.

The first minister explains a further paper specifically on European Union issues will be published later in the year.

She says: "Independence opens the door to Scotland rejoining the EU and the single market."

Trade across the UK must not be the limit of Scotland's ambition, with the EU market being seven times the size of the UK's. Ms Sturgeon goes on.

Philip Sim
BBC Scotland political correspondent

Image source, Getty Images

The paper is predicated on Scotland rejoining the EU as a full member state. That is no easy thing in itself, and another paper is apparently forthcoming on how and when that could be achieved.

It also throws up all kinds of questions about borders. Ms Sturgeon is making a “best of both worlds” argument in terms of movement of people, which would see Scotland remain both within the Common Travel Area with the UK and Ireland, while also joining the EU’s Schengen free movement area.

However she acknowledges there is “significant uncertainty” about UK’s relationship with the EU, which could throw up difficulties when it comes to the movement of goods.

The paper accepts there would need to be physical customs checks for goods, on the main trunk routes and at rail terminals. There would need to be negotiations about how exactly all of this would work – something which is common with many of the proposals in the paper.

Image source, Getty Images

Ms Sturgeon turns to the Building a New Scotland Fund.

The first minister says: "Oil and gas is a declining asset and our obligation to the planet means that we must move away from fossil fuels as quickly as possible."

She says: "If we invest remaining oil revenues and use remaining borrowing powers responsibly and for a purpose, we can invest up to £20bn in the first decade of independence."

This will help "kickstart the inclusive growth".

Image source, Getty Images

The first minister says the Scottish government rejects austerity, which she describes as "morally wrong and economically counter productive".

It's not necessary in a country as wealthy as Scotland, she adds, stressing the need to create a "sustainable, inclusive economy that delivers fiscal sustainability.

"This will come from investment in people and infrastructure", she says.

On UK debt, Ms Sturgeon says there is no legal responsibility for an independent Scotland to take that on.

However, she says in her view there is a "moral" responsibility.

"In light of that, and indeed our desire for a strong future partnership between Scottish and UK governments, we would seek a fair settlement on both debt and assets."

There'll be no fixed timetable for the introduction of a Scottish pound, Ms Sturgeon says.

It will only be introduced after a set of objective requirements and criteria are met, guided by advice from the central bank and subject to a decision by Parliament.

The first minister says the paper sets out in detail a “careful and responsible phased approach”.

In the shorter term there would be continued use of Sterling, the first minister confirms.

Philip Sim
BBC Scotland political correspondent

The Scottish government’s plan to gradually transition to a new currency post-independence is a well-established one.

The SNP’s Sustainable Growth Commission paper set out plans for this in 2018, and Ms Sturgeon has defended them repeatedly since.

There have been a few changes since; this new paper sets three tests for the move to a Scottish pound, while the Growth Commission set six.

The move was also forecast to take at least a decade the last time round, while Ms Sturgeon does not want to fix it to a timescale now.

But the biggest change may be in the status quo position, with the UK pound having been rocked by a series of financial crises. Ms Sturgeon will be hoping that fiscal chaos in the existing system will make a big change easier to sell to voters.

Ms Sturgeon says that "fiscal credibility and market confidence" are essential to the plan for independence.

But she says the country is so much more advanced than it was in 2014, now having its own tax and social securtity agencies.

“There have surely been few if any nations in history better prepared for independence than we are,” she says.

Ms Stugeon says an independent Scottish central bank would be created, along with a debt management office and a significantly strenthened Scottish Fiscal Commission to replicate the work of the Office for Budget Responsibility.