The UK and Scottish governments have finally published the long-awaited update to the Fiscal Framework, following the review that has been going on for the last couple of years. Since this was due to happen in 2021, we have been waiting for the outcome of this review. For more background, see our blog from late 2021. For those new to it, the Fiscal Framework … [Read more...] about Treasury gives Holyrood more fiscal leeway
fiscal framework
How sustainable are Scottish tax and spend policies?
The Scottish Fiscal Commission have published their first Fiscal Sustainability Report (FSR). This is a very different analysis to their regular forecasts for the Scottish economy, tax receipts and social security payments. The idea of measures of fiscal sustainability is to assess whether current policies on both spending and revenues can continue over the long-term, given the … [Read more...] about How sustainable are Scottish tax and spend policies?
Prospects for future fiscal devolution?
In the early years of devolution, the fiscal powers of the devolved institutions were strictly limited. Since then, increased tax, spending, and borrowing powers have given both the Scottish and Welsh Parliaments substantial control over elements of the income tax system along with a series of fully devolved taxes. Holyrood is also responsible for nearly £4 billion of social … [Read more...] about Prospects for future fiscal devolution?
Tax policy in Holyrood 5
Tax has been at the forefront of policy debate throughout the last parliament. Most noticeable has been the Scottish Parliament’s new powers on income tax. These became operational in 2017, and paved the way for significant policy divergences between Scotland and the rest of the UK (rUK). But there have been significant policy changes in other areas too. Council tax has been … [Read more...] about Tax policy in Holyrood 5
Spending Review 2020 and Scotland
The 2020 Spending Review was underpinned by the anticipated ‘scary’ numbers on the UK economy and public finances. The economy will shrink 11% this year and recover only about half that ground next year. Unemployment is forecast to reach 7.5% next year – and potentially higher under a ‘no deal’ Brexit scenario. The pandemic is anticipated to cause permanent damage – with the … [Read more...] about Spending Review 2020 and Scotland