Public Finance

All you need to know about Scotland's economy, its finances, independence and Brexit.

This analysis of the impact of austerity on nationalism stresses the role of blame as it interacts with political institutions and fiscal pressures.

Argues for federalism in public funding where taxation is devolved.  Proposes that this financial autonomy would provide a better connection between democracy and public finance.

The early operation of the 2016 Scottish Fiscal Framework and the divergence of UK and Scottish income tax rates highlights the practical issues of devolved tax policy in the context of UK fiscal centralization. 

The overall effect of the new Barnett funding system is to place Scotland in a vulnerable position, where it is at much greater risk of falling into a cycle of economic decline relative to the rest of the UK.

The Barnett formula calculates the annual change in the block grant. The formula doesn’t determine the total size of the block grant just the yearly change. For devolved services, the Barnett formula aims to give each country the same pounds-per-person change in funding.

The Barnett formula is a mechanism used by the Treasury in the UK to automatically adjust the amounts of public expenditure allocated to Northern Ireland, 

All of the plausible negotiating strategies represent clear advantages for an independent Scotland.  Even the least advantageous (the Annual Solidarity Payment) presents a scenario where Scotland would save around £1.5 billion per year in debt interest payments compared to that currently assigned

t’s correct that spending on public services in Scotland is 20% higher per head than in England. But this money comes from the block grant from the UK Treasury, rather than from England specifically. An increasing proportion of the Scottish government’s budget also comes from taxes it raises

A report suggests an independent Scotland would have to make public expenditure reduction.  he report actually says that public spending could continue to grow. This does depend on sufficient growth in the economy after independence.