‘On balance, the SFC’s GDP forecasts are not out of kilter with the recent past. And the SFC assumes that there will be no ‘bounce-back’ in Scottish growth to recapture weak growth relative to the UK over the past 2.5 years’.
‘Under the Scottish Government’s proposed income tax policy, everyone earning under £33k will pay less tax in 2018/19 than they did this year (2017/18). BUT part of this is due to the increase in Personal Allowance, which would have happened anyway, i.e. irrespective of any announcement made by Mr Mackay today.’
.’.the allocation of an additional £1bn funding to Northern Ireland over two years represents a particularly large financial settlement to have bypassed Barnett. To secure an equivalent funding increase via the Barnett Formula, the UK Government would have had to increase comparable English spending by £30bn; this in turn would have generated Scottish consequentials of £3bn..’
If the UK economy worsens post-Brexit, Scotland’s budget will be affected. Already, the Chancellor’s decision to abandon his fiscal targets and borrow has knock-on effects we’ll find out about in the autumn. Scotland’s fiscal framework will come under greater strain.
Scottish Vote Leave has claimed that Brexit would bring an extra £1.5bn a year to Scotland’s budget. But the claim is erroneous as a leading economist explains here.
Nicola Sturgeon has ruled out raising the additional (“top”) rate of tax to 50p, using similar arguments to those of George Osborne. But is she right to do so? A leading economist is suitably sceptical…but not that hostile.
George Osborne’s eighth Budget is unravelling as each day passes. Here a leading Stirling Uni economist suggests it’s his direction of travel that’s wrong. Time to relax the fiscal rule and invest for the future.
The Scottish Rate of Income Tax is often said to be regressive and can only be progressive if the higher bands are raised. But the Financial Secretary’s decision to leave it at 10p flies in the face of evidence, argues a leading economic expert.