I FIND it hard to believe that Social Justice Secretary Alex Neil was unaware that the Scottish Government would have the power in future to top up tax credits to compensate for the cuts imposed by George Osborne (“SNP in U-turn over tax credits claim”, The Herald, November 5). After all the adverse media comment about the cuts, Mr Neil's volte-face and embarrassing admission smacks of incompetence or perhaps it was yet another example of the tactic to try to blame the UK Government for all Scotland's woes.

In any event, with the additional powers being devolved to Holyrood the buck will soon rest with Scottish politicians and it's about time we saw some evidence of them being able to handle them.

Bob MacDougall,

Oxhill, Kippen, Stirlingshire.

BEFORE the referendum, every independent financial commentator had concluded that independence would damage the Scottish economy. Now it appears that the continued threat of it is already having a negative impact. For the first time in 35 years we are worse off than the rest of the UK (''Scotland no longer wealthier than the rest of the UK”, The Herald, November 5). Quite simply, businesses will not invest in a country which cannot even guarantee which currency it will be using in 10 years' time.

The repeated anti-austerity rhetoric with absolutely no concrete policy as to how it will be achieved, is also self-defeating. President Hollande in France found to his cost, and that of his fellow citizens, that frightening off business does significant damage to the economy, and particularly to the prospects of the more disadvantaged in society.

We have to thank the SNP for a demoralised police force, falling educational standards and now a failing economy. At what point does "standing up for Scotland" actually do any of us any good?

The young people of Scotland cannot afford much more of this.

Carole Ford,

132 Terregles Avenue, Glasgow.

I AM afraid that Dave McEwan Hill has not got it right (Letters, November 4). If he was going to have a haircut and had an electricity bill for £10 but only had £7, then, should he pay the electricity bill, he will have an overdraft of £3 and untidy hair. He would most certainly would not have £1 just because he chose to forgo the haircut costing £4.

If unable to generate more income then the solution is to turn off the electricity and get a friend to cut your hair (which is probably what already happens if Mr Hill thinks that he can get his hair cut for £4). No doubt this is the policy that will be adopted by the present Scottish Government with its current policy on energy production. The unknown factor is exactly which friend will be called upon to clear up the mess.

Sandy Gemmill,

40 Warriston Gardens, Edinburgh.

ACCORDING to your report), the economic case for independence “has collapsed'', as it is reported that Scotland's GDP has dropped by 1.1 per cent below that of the UK.

Leaving aside the hyperbole in the article, what does this amount to? For every £100 generated by the UK Scotland can only generate £98.90. Call in the bailiffs.

Is this evidence of long-term decline? Well, no. Actually this is the first time in 35 years that this happened - and has only occurred in the last six months.

So, as Corporal Jones from Dad's Army would say: ''Don't panic, don’t panic.''

James Mills,

29 Armour Square,

Johnstone.