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The campaign for the Scottish Parliament election of 2016 has lacked the energy and enthusiasm of #indyref1 or the general election of 2015. The winner has been known from the start – and long before. Most commentators have focussed on who comes second and becomes the official opposition in Holyrood.

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Scotland's fiscal framework: Assessing the agreement

The Smith Commission Agreement, published on 27 November 2014, set out proposals for substantial fiscal devolution to the Scottish Parliament. The Scotland Bill – due to receive Royal Assent shortly – will enshrine these powers in law.

The recent GERS figures for Scotland’s fiscal balance in 2014-15 were entirely predictable. For the first two quarters of that financial year, oil prices averaged around $100 per barrel. Revenues from North Sea oil were flowing strongly. During the next two quarters, the oil price averaged around $50 per barrel and revenues stalled.
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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.
 
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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.
 
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  • 18th December 2018

    Aileen McHarg looks at last week’s decision by the Supreme Court in the UK Withdrawal from the European Union (Legal Continuity) (Scotland) Bill reference which demonstrates both the strength and the weakness of Holyrood as a legislature.

  • 17th December 2018

    The Supreme Court's ruling on the Scottish Continuity Bill gave both sides something but acknowledged that the vast bulk of the Bill was within Holyrood's competence at the time it was passed however, suggests Sionaidh Douglas-Scott, the strong feeling that devolved interests are not taken seriously highlights underlying fractures within the Union.

  • 14th December 2018

    Disagreements about the border between Northern Ireland and Ireland are about more than practical considerations of where customs checks should be performed, says Michael Keating.

  • 14th December 2018

    Derek MacKay’s third budget of this parliamentary session was doomed to be overshadowed by events at Westminster.

  • 12th December 2018

    Although the N-VA has insisted it left the Belgian government to pursue ’principled opposition’ those principle are, says Coree Brown Swan, at the very least informed by a strategy that allows it to maintain policy influence from outside government while countering the electoral threat posed by a resurgent Vlaams Belang.

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