Fiscal Policy

Hide tag: 
Show

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.

So the fiscal framework has been agreed. Or has the can just been kicked down the road? Both interpretations are consistent with last week’s last-minute agreement between the Scottish and UK governments. There is now no significant obstacle to the passage of the Scotland Bill. As a result the Scottish Parliament will take control over the setting of the rates and bands of income tax from 2017 and a raft of welfare powers will be introduced when the administrative arrangements can be made.
 
Read More

After months of protracted negotiation, the UK and Scottish governments have finally found something they can agree on, says David Eiser - that two plus two equals five. 
 
So, after months of negotiation, a deal has finally been agreed on how the Scottish Government’s block grant will be adjusted to reflect its new powers over taxation and welfare.
 
John Swinney has effectively got the deal he wanted, at least until 2022. And Nicola Sturgeon has said the deal provides ‘not a penny of detriment’ to the Scottish budget.
Read More

In the first of a series of analyses of the Scottish parties’ manifesto proposals from the University of Stirling and Centre on Constitutional Change, David Bell and David Eiser consider the Labour proposals for income tax announced recently.
 
Read More

Scotland’s First Minster suggested recently that the Scottish Rate of Income Tax is ‘anything but progressive’, but, says David Eiser, this is not strictly true.
 
In December’s Budget, John Swinney chose not to raise the Scottish Rate of Income Tax (SRIT). His reason for not doing so is that it would not have been possible to protect those on the lowest incomes and would thus have been unfair.
 
Read More

John Swinney's final budget before the 2016 Holyrood elections was billed as a Scottish alternative to austerity but, says David Eiser, it may have been Scottish but it wasn't very alternative. 
 
We knew a lot of the context before John Swinney stood up to deliver his Draft Budget on Wednesday. The Scottish Government’s grant from Westminster for day-to-day spending would be 1 per cent smaller in 2016/17 as it was 2015/16. Its grant for capital spending on the other hand would increase by almost 5 per cent.
 
Read More

Pages

Latest blogs

  • 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.

Read More Posts