‘The scale of the shutdown in our economy is so large it will take months, if not years, to recover, Key now will be ensuring that long-term scarring effects of any recession can be mitigated as much as possible” An update…
The money could be better spent – in good sardonic style, Fraser of Allender lists the reasons for not wasting time on ‘a cracking idea’.
The resignation of finance secretary Derek Mackay overshadowed the fourth budget of this parliamentary term, which has led to a healthy increase in the resources available to the Scottish Government. How does it propose to spend this money?
Fraser of Allander identifies key points
‘It will simply not be sufficient for the UK Government to highlight risks with independence. The status quo itself has important policy challenges, whether that be the economic costs of leaving the EU Single Market or the economic effect of limits on immigration.’
‘Perhaps most of all, the importance of setting out a stable long-term environment for investment will be the most effective policy that anyone could set. It will also require international cooperation, both in terms of connectivity, R&D and investment.’
‘Unprotected areas of the Scottish budget should avoid real terms cuts in 2020/21, but they should not expect a spending bonanza.’ Latest FAI analysis…
‘Much more could be done by government to defend these statistics and proactively clear-up misunderstandings.’
‘If Scotland is to meet the challenges of the next decade and beyond – and take advantage of the undoubted opportunities that will arise – it is likely to require a much bolder economic policy agenda’
‘But what can be said with certainty, if these forecasts are correct, is that the amount of money that the government had planned to have at their disposal – all other factors remaining equal – will be much smaller’.
‘The challenge with setting ambitious targets is that parliament can be judged, not just on whether or not it is meeting these targets, but on the effectiveness of the reforms they are implementing.’