“under current Scottish and UK fiscal policies, if public services in Scotland are to continue to be delivered as they are today, Scottish Government spending over the next 50 years will exceed the estimated funding available by an average of 1.7% each year.”
Scotland needs a new politics – and fresh policy options
As the SNP leadership campaign crawls to the finish post, time for a Big Debate on the political and socio-economic future in Scotland and the UK
What does Hunt’s first Budget mean for Scotland? (Update)
“The £320 million of money coming to Scotland mentioned in the Chancellor’s speech is for 2023-24 and 2024-25, but that’s all we’ve been told. Given that these figures will have been worked out in advance, there is surely no reason why these figures can’t be released in full at the same time as the rest of the Budget documents.”
Prospects for future fiscal devolution?
“Are current fiscal powers optimal for managing day-to-day and longer-term risks? And do the devolved administrations have the right tools to manage the financial risks they are likely to face now and in the future?”
Scotland’s currency options under independence
“The transition to full use of a S£ would take time, with high use of the UK£ within Scotland even once the S£ is established, whether at independence or soon after. In my view, it should start on day 1 of independence.”
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
The left must abandon high tax policies
“The left should opt for an eco-fiscal policy, designed to dismantle rentier capitalism. It should accept that high progressive income tax is out of date. It should make clear that income and consumption taxes are mainly for public services and infrastructure, including transport, defence, housing, schools and other social needs. Beyond that, the aim should be to restructure fiscal policy as a means of common justice.”
Scotland deserves better than two bad choices
The latest Building a New Scotland paper on the economy is being roasted – including by informed nationalists. Here a prominent unionist dissects a weak case. “Doubtless the SNP will argue all this is “Project Fear”. It really isn’t. It is the reality that flows from our underlying economic position.”
The ‘markets’ ease the return to economic reality
“But there may be a silver lining here. This may be a wake-up call that populist policies need to pass the credibility test when it comes to foreign exchange and bond markets,” writes economist and university principal Anton Muscatelli on how the markets reined back an imploding UK government.
Fantasy economics: alive and well on both sides of the border
“Where Scotland differs (from the UK) the most is in its lack of engagement on economic issues. If this continues then the £1.5 billion (fiscal) shortfall will continue to grow and taxes will continue to rise to compensate. Surely no-one wants this but then why does no one take it seriously?” asks John McLaren in his latest acute commentary on the state of the Scottish economy.