A number of reports have been written about Scotland’s fiscal position. Below are a selection that can be downloaded.
- Hughes-Hallett & Scott | ‘Scotland: A New Fiscal Settlement’
- Calman | ‘Commission of Scottish Devolution’
- Lord Steel | ‘The Steel Commission’
- Scottish Government | ‘The National Conversation’
- Reform Scotland | ‘Fiscal Powers’
By: Professor Andrew Hughes Hallett, Department of Economics and School of Public Policy, University of St Andrews and George Mason University, and Professor Drew Scott, School of Law University of Edinburgh.
Again the argument is straightforward. As long as Scotland’s budget is principally funded by a block grant from Westminster there is no incentive for the receiving government ever to spend less than the total sum available.
Until such times as a proper assessment of relative spending need across the UK is carried out, the Barnett formula, should continue to be used as the basis for calculating the proportionately Reduced block grant.
Download the report summary
Download the full report
Despite the decentralisation of political power since 1999, the UK remains one of the most centralised fiscal systems in the developed world. Sub central states in other OECD countries enjoy much greater fiscal power with central grant funding making up a much smaller portion of revenue.
The Barnett Formula sets a limit on funding available to devolved administrations and determines the Budget of the Scottish Government based on policy priorities elsewhere in the UK. Scotland is dependent on the success or otherwise of the UK’s macroeconomic and fiscal policy framework.
As a principle all levels of government in Scotland:UK, Scottish and local – should have the power to raise the bulk of the money which they are responsible for spending.This is important because it would increase the autonomy of these institutions and enable them to pursue policies which they believe to be in the interests of people living under their jurisdiction. It would make the different tiers of government accountable to their electorates for the financial decisions they take – the overall levels of taxation and spending as well as how revenue was raised and on what it was spent.
Download the report – 1st Edition, November 2008
Download the report – 2nd Edition, October 2009
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