The estimates of Scotland’s net fiscal balance are out for 2024-25. As we previewed, there was deterioration of the fiscal balance, which is unsurprising given that the UK’s fiscal balance worsened during that year as well. Scotland’s estimated net fiscal balance was estimated to have been -£26 billion, or -12% of GDP, when including a geographical share of North Sea revenues … [Read more...] about Higher budget deficit driven by devolved spending
The spending rollercoaster is well and truly back
Rachel Reeves has delivered the outcome of the Spending Review for both resource and capital budgets across departments and devolved administrations.It was a speech long on detail about many capital projects, but much of the lead was buried. In our preview last week, we noted that the envelope set out in the Spring Statement promised to be a reversal of Robert … [Read more...] about The spending rollercoaster is well and truly back
How the Scottish Government’s net fiscal position has evolved
2024-25 has been a financial year of tribulations in terms of the Scottish Government’s ability to adhere to its legally binding requirement to balance its resource budget. When we presented our 2023 Budget Report, we highlighted the challenges that were likely to come in the year ahead. As a result of these challenges, the 2024-25 Budget included some increases in tax, as … [Read more...] about How the Scottish Government’s net fiscal position has evolved
GERS 2023-24: The results are in!
The latest Government Expenditure and Revenue Scotland 2023-24 statistics - that normally provoke a bitter and unrewarding spat over their significance for Scottish independence and/or the Union - came out on August 14 with little or no trace of late summer madness. These statistics set out three main things, write the FAI authors:The revenues raised from Scotland, from both … [Read more...] about GERS 2023-24: The results are in!
What do Humza Yousaf’s new policies mean for Scotland?
Humza Yousaf addressed the Scottish National Party Conference for the first time as First Minister, in a speech that contained a few new proposals. Here are some of the main consequences of what was announced. Council tax frozen, but at what cost? The centrepiece announcement was that 2024-25 council tax rates across Scotland would remain the same as in 2023-24. This was a … [Read more...] about What do Humza Yousaf’s new policies mean for Scotland?