‘Why has wage growth been languishing since the mid 2000s, why has productivity collapsed, what does this mean for our longterm economic future in the world?' That’s the economist David Eiser speaking. We met him before the 2016 Scottish elections shifted the political landscape and then Brexit turned it upside down. But fundamental challenges remain for Scotland’s economy so, … [Read more...] about Unanswered questions of Scotland’s economy
SRIT
Try some ‘lab federalism’ on top SRIT rate
To increase the additional rate or not to increase the additional rate?That is the question that has been placed centre stage of the Scottish election, ahead of the full devolution of income tax bands and rates to the Scottish Parliament in 2017.The Additional Rate is paid by those with incomes over £150,000. The additional rate was introduced at 50% in April 2010, … [Read more...] about Try some ‘lab federalism’ on top SRIT rate
University is no universal benefit
Free tuition is a “universal” benefit, according to Scottish Ministers.Really? The public subsidy for school-level education is universal. Absolutely everyone is entitled to a school place. Indeed, if you don’t go to one of schools provided by the state, your parents will be under the cosh to explain what alternative education is in place. A number of people reject this … [Read more...] about University is no universal benefit
SG borrowing to keep the economy buoyant
The Scottish Government is poised to use its new borrowing powers for the first time, although it will be a fairly modest venture into debt. The budget for 2016-17 envisages drawing £316m from the National Loan Fund (NLF) to help finance building projects totalling £2.2bn.The ability to borrow comes as part of the extra powers granted in the 2012 Scotland Act. It came into … [Read more...] about SG borrowing to keep the economy buoyant
Why no deal on fiscal detriment?
What might have been a technical negotiation about the fiscal framework for the Scotland Bill is becoming high political drama.The two governments are locked in negotiations, but seem unable to reach a deal. With the Scottish elections looming in May, the Scottish government has set a St Valentine’s Day deadline for the end of negotiations. Otherwise they will not seek the … [Read more...] about Why no deal on fiscal detriment?