NEW powers for Scotland delivered under the Smith commission will see Scotland worse of financially, according to one of Scotland’s leading businessmen.

Sir Tom Hunter said the new powers are “financially neutral” but administration costs will eat further into the budget.

The entrepreneurs Hunter foundation set up a website last year to provide advice to voters ahead of the referendum and has produced a one year on review of events since.

Mr Hunter who said he wouldn’t tell people how he voted said it is now time to move on using the powers Scotland has.

The review, by economist professor David Bell of Stirling University, found the tax promises of the Smith commission were being delivered but the welfare powers fell short.

Professor Bell notes Scotland will control an extra £17.4bn of revenue, and have to spend an extra £2.7bhn on welfare.

It states “In effect this is a zero sum game and in fact Scotland may well be worse off economically. Whilst conferring new powers there is no new money in the pot and new funds under Scottish Government control require administering so costs, not savings will likely be the order of the day.

“For clarity the £17.4 billion will simply be deducted from the block Barnett payment.”

Mr Hunter said the delivery of more powers has reduced Scotland’s budget.

He said: “For me personally it’s time to move on, move forward and use the powers we have. The population decided, politicians are democratically elected and should and must respect the decision of the voters.

“We are all ambitious for Scotland and it’s time for us to come together, put our differences aside and focus upon building a more prosperous, productive and fairer Scotland where opportunity prevails for all.”

The review also asked how the economy could look had Scotland voted yes and it found further austerity or increased taxes would be needed to counter the drop in oil revenue.

The report states the White Paper estimated oil revenue at £7.5bn a year but said following the price crash the more likely figure is likely to be £0.5bn for each of the next five years.

It states: “Clearly Scotland would have faced either higher borrowings or increased austerity unless of course tax raising powers were deployed to offset the income loss.”