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.
Economics
Budgets, ideas and lethargy in the Scottish Government
“Questions like – are free tuition fees a better use of money than directing it towards reducing child poverty? – remain unaddressed. The Scottish Government is reactive to UK policy and funding and therefore constantly in catch up mode.”
GERS 2023-24: The results are in!
“…the challenge is stark, with a likely deficit far in excess of the UK as a whole, other comparable countries or that which is deemed to be sustainable in the long-term. It is not enough to say ‘everything will be fine’ or ‘look at this country, they can run a sensible fiscal balance so why can’t Scotland?’. Concrete proposals and ideas are needed.”
Why Labour’s “borrowing to invest’ rule is no game-changer
“Changing from the borrowing rule to the ‘borrow-to-invest’ rule does nothing to change the fiscal space available to the Government so long as it remains committed to getting debt on a falling path by the end of the forecast.”
Swinney must move beyond old orthodoxies
Scotland cannot transform its economy using the policy playbook from the 1990s, argues this leading economic commentator/analyst. It needs a huge injection of low-carbon investment (and more) to meet net zero and make the just transition.
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.”
How much will an extra Scottish Income Tax band raise?
An extra band of income tax at the higher rate charged on good earners would raise money for the Scottish exchequer but less than anticipated…
What’s in the new Programme for Government? Look in the long grass
Humza Yousaf’s first programme for Government kicks several big fiscal and other policy issues into the long grass.So, do we have to wait till the Scottsh Budget likely on December 14?
Let’s make interest rates zero – permanently
“The idea of permanent zero rates is far outside the mainstream of economic thinking. But perhaps (Joan) Robinson was right to suggest it as a viable compromise between capitalism and more radical alternatives: rewarding entrepreneurship without compounding inequality or incentivising the unsustainable use of resources. At a time like this, it’s an old idea well worth considering.”
Treasury gives Holyrood more fiscal leeway
The Fiscal Framework behind the Scottish Budget has finally been updated, giving the Scottish Government greater leeway when it comes to tax and spend poli