The publication of the latest Government Expenditure and Revenue Scotland (GERS) report each year provokes an unedifying and often fruitless argument between proponents of Scottish independence and defenders of the Union of 1707, between those who think Scotland can overcome its debt/deficit problems on its own through borrowing on global markets like any other sovereign state … [Read more...] about GERS, COVID and Scottish independence
fiscal framework
GERS 2019 and indyref2
The size of Scotland’s inherited fiscal deficit, and how best to deal with it is likely to remain a highly relevant issue if the prospect of a second independence referendum rises. Unlike the currency issue this topic is one that has been little debated by those who favour independence.The Scottish Government has published the latest edition of GERS, covering financial … [Read more...] about GERS 2019 and indyref2
MSPs miss the bigger picture
A series of SNP members lined up to lob the Cabinet Secretary gentle underarms for him to whack towards the opposition. Our problems would all be solved if only the UK Government would smash open the piggy bank...The annual Scottish Budget contains lots of detail on spending priorities for the coming year.But with a single year budget it is often difficult to step back … [Read more...] about MSPs miss the bigger picture
VAT assignment – bridge too far for fiscal devolution?
Alongside this month’s Budget, the Scottish Fiscal Commission will set out forecasts for VAT revenues in Scotland.2019-20 will mark the first year in which VAT assignment will be explicitly incorporated into the Budget (although, as with all the phased implementations of Scotland’s new tax powers it will be 2020-21 before it has a meaningful implication for spending).In … [Read more...] about VAT assignment – bridge too far for fiscal devolution?
Funding the Scottish budget deal
Last week, the Scottish Government reached a deal with the Greens (and two Lib Dems) at Stage 1 of the 2018-19 Budget Bill. Underpinning the deal was an additional £10.5 million for inter-island ferry services and £159.5 million for local government.So where did the money come from to ‘boost’ spending and what might be the implications? For those of us who have seen a few … [Read more...] about Funding the Scottish budget deal