The negotiations around adjustments to Scotland's block grant have been the subject of months of talks between the Scottish and UK governments. David Bell, David Eiser and David Phillips set out the main points of contention in this extended blog.
The Scottish Government’s position and initial proposals
The UK government’s position and initial proposals
A recent proposed ‘compromise’
Simulating the options
Table 1: Difference in Scottish Government’s budget from block grant and devolved income tax after 15 years, relative to two “no change” counterfactuals
Source: Authors’ calculations using ONS population projections, OBR’s Fiscal Sustainability Report, HMT’s Public Expenditure Statistical Analysis and Statement of Funding Policy, and HMRC’s Disaggregated Tax Revenue Statistics