The two main tax measures – lower NICs and making full expensing permanent – are UK-wide, and apply automatically in Scotland. Some other measures announced are England-only, and therefore bring with them additional funding for the Scottish Government through the Barnett formula, totalling £233m in this financial year and £281m in the next. The main measures generating … [Read more...] about What does the Autumn Statement mean for Scotland?
Economics
How much will an extra Scottish Income Tax band raise?
This is a a short briefing from the Fraser of Allander Institute on how much revenue would be raised by some of the proposals for an additional band of Scottish Income Tax between the higher (42p in the pound) and top (47p in the pound) rates. There are two separate proposals in the public domain:One from the Scottish Trades Union Congress (STUC), which would levy a 44p rate … [Read more...] about How much will an extra Scottish Income Tax band raise?
What’s in the new Programme for Government? Look in the long grass
It’s a new term at Holyrood, and a new Programme for Government – the first for the new First Minister Humza Yousaf.In terms of content, however, there are not a lot of new ideas to get excited about. This isn’t necessarily a criticism – we all remember the meltdown generated by a certain “mini-budget” statement made by the UK Government about this time last year. In … [Read more...] about What’s in the new Programme for Government? Look in the long grass
Let’s make interest rates zero – permanently
In 1937 the English economist Joan Robinson proposed that “when capitalism is rightly understood, the rate of interest will be set at zero and the major evils of capitalism will disappear”. John Maynard Keynes, who had taught Robinson, suggested something similar a year earlier in slightly more qualified and technical terms, arguing that this would be … [Read more...] about Let’s make interest rates zero – permanently
Treasury gives Holyrood more fiscal leeway
The UK and Scottish governments have finally published the long-awaited update to the Fiscal Framework, following the review that has been going on for the last couple of years. Since this was due to happen in 2021, we have been waiting for the outcome of this review. For more background, see our blog from late 2021. For those new to it, the Fiscal Framework … [Read more...] about Treasury gives Holyrood more fiscal leeway