.’.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.
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.