“The Scottish Government’s block grant adjustment is based on the projected expenditure in England and Wales, and therefore a tightening of access to PIP will (all else equal) make the Scottish Budget worse off. It is then the Scottish Government’s decision to move in lockstep or to find the additional funds from other sources.”
Fiscal sustainability and the Scottish budget
The draft Scottish Budget raised concerns regarding financial planning, particularly about the Funding shortfall for Employer National Insurance and the late commitment to mitigate the two-child limit on benefits. Mitigation aims to help families affected by this policy, but fiscal sustainability and proper planning are crucial to effectively address child poverty targets by 2030.
What does the Autumn Statement mean for Scotland?
“As these are devolved matters, the Scottish Government receives this funding but is under no obligation to match the policies announced by Westminster. For example, the retail, hospitality and leisure relief is a repeat of the measure for 2023-24, which the Scottish Government decided not to pass on and spent elsewhere. So this is one to watch out for at next month’s Scottish Budget.”
Swinney should use his fiscal powers to the full: Update
“But there are also flexibilities that the Deputy First Minister has for the next financial year that were not available to him for this year – the Scottish Government does have tax powers that could be used, if he wishes, to raise more revenue.” FAI sets the scene for Thursday’s Scottish Budget
Going for growth – or broke?
The new UK Chancellor has set out his radical fiscal plans – and prompted a sterling crisis. The situation is so grave, not least for Scotland, it merits a return from us in the interests of a wider public policy debate. Here we republish commentary from the FAI – and expect to run further contributions this autumn.
Sunak’s Budget and Scotland
“..further Covid-related allocations are designed to support the economy during ongoing restrictions – and these provide the Scottish Government with further resources during 2021/22. In years beyond that, this was a budget that aims to rebuild the economy by leveraging investment, whilst raising more from tax and tightening the screw on public services spending. But there is no role in the future economic vision for welfare policy or public services spending.”
Spending Review 2020 and Scotland
‘The scheme will apparently operate ‘UK wide, using the new financial assistance powers in the UK Internal Market Bill’. Whilst the fine details are awaited, the lack of explicit reference to the devolved governments will antagonise intergovernmental relations in area where tensions are already running high.’
Recovery? what recovery?
‘Both governments have a responsibility. Yes, the Scottish Government needs to be much more open about the financial scenarios it faces. But the UK Government needs to have a much greater appreciation of the knock-on impact of its decisions, such as the cancellation of the Autumn Budget, on devolved policymaking. Devolution shouldn’t be seen as an afterthought.’ (Graeme Roy)
Fairer, greener, more equal but how?
The Scottish Government has yet another new group of economic advisers (on the recovery): it should think more about practical delivery of any new policy ideas, says FAI.
Coronavirus and the Scottish economy: update2
‘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…