In headline terms, the Spending Review looks little different from the public finance forecasts in the summer budget. The Government will achieve a fiscal surplus by the end of this parliament (the first time that this has been achieved since 2001). And total public spending as a percentage of GDP will fall from 40% currently to 36%.
But Osborne has managed to achieve this whilst simultaneously being more generous on the spending side.
The Scottish government’s block grant allocation between 2015-16 and 2020-21 was set in the 25th November spending review delivered by the Chancellor of the Exchequer. Current spending will increase from £25.9 billion now, to £26.5 billion in 2019-20. This represents a 5% real cut (equivalent to £1.3 billion). In contrast, due to the UK government’s decision to increase capital spending by £12 billion compared with its plans last July, Scotland’s capital budget will increase from £3 billion to £3.5 billion by 2020-21, an increase of around 10% in real terms.
The proposals within the Scotland Bill - as well as the associated fiscal framework currently being worked out by the UK and Scottish Governments - represent big changes to Scotland’s political system, says Nicola McEwen. However, has enough room been left for the public at the negotiating table?
“With great power comes great responsibility” – in Uncle Ben’s memorable last words to Spiderman. But is the reverse also true? Do great responsibilities bring great power?
Throughout most of its history, Labour has been a unitary party with authority located in London-based institutions corresponding, in this instance, to the organisation of the UK state. All this altered with devolution from which has stemmed a constitutional distinction between devolved powers (under the remit of the devolved bodies) and reserved ones (left to Westminster).