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Sceptical Scot

Asking Questions. Seeking Answers.

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fiscal framework

How sustainable are Scottish tax and spend policies?

March 22, 2023 by Mairi Spowage Leave a Comment

“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.”

Prospects for future fiscal devolution?

February 25, 2023 by Graeme Roy Leave a Comment

Winter-flowering spikes of Witch Hasel, yellow against a blue sky: photo Fay Young

“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?”

Tax policy in Holyrood 5

March 27, 2021 by David Eiser 1 Comment

The author, fiscal expert at FAI, examines the tax changes designed to achieve greater fairness made in the fifth Scottish Parliament – and the scope for reform and greater powers in the next.

Spending Review 2020 and Scotland

November 28, 2020 by Fraser of Allander Institute Leave a Comment

A dazzling dawn over Loch Rusky, Image by John McSporran Creative Commons

‘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.’

GERS, COVID and Scottish independence

August 29, 2020 by John McLaren 2 Comments

“This lack of economic engagement by senior SNP Ministers remains a weakness for the independence message on the economy. Such a policy vacuum in a key area of the independence debate may be manageable when minds are focussed elsewhere but if a Second Referendum were to become a reality then it would soon turn into a significant weak point in the pro-independence argument.”

GERS 2019 and indyref2

August 22, 2019 by John McLaren 1 Comment

A small ship, hopelessly at sea

‘The comment by the Scottish Finance Secretary at the time of publication that “Scotland’s economy and public finances are strong” seems fanciful given any reasonable analysis of recent low economic growth figures and a still high, by international standards, fiscal deficit.’

MSPs miss the bigger picture

June 20, 2019 by Sam Smith Leave a Comment

MSPs on finance committee debate the Scottish Budget: ‘Coming in the midst of the parliament’s 20th anniversary celebrations, this was not a good advert for parliamentary effectiveness in holding the government to account’.

VAT assignment – bridge too far for fiscal devolution?

December 9, 2018 by Fraser of Allander Institute Leave a Comment

A key aim of the Smith Commission was to improve accountability and make Scotland’s politicians responsible for the money that they spent. Unfortunately rather than helping to deliver this aim, the current proposals for VAT assignment risk undermining that principle.

Funding the Scottish budget deal

February 6, 2018 by Fraser of Allander Institute Leave a Comment

‘Whilst there is clearly a negotiating advantage in the government holding back some monies as part of their tactics to get the Budget Bill through, one can see MSPs from now on assuming that £100 million is a useful ballpark for the amount the government may have ready to hand to push through a deal’.

Why do Scottish v UK growth forecasts differ?

January 18, 2018 by David Eiser 1 Comment

‘On balance, the SFC’s GDP forecasts are not out of kilter with the recent past. And the SFC assumes that there will be no ‘bounce-back’ in Scottish growth to recapture weak growth relative to the UK over the past 2.5 years’.

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