I was born of a strong proud Scottish family so I say this with some sensitivity of that is possible on a forum in the iinterweb.
Does Scotland contribute to or benefit from the overall balance of the UK economy. As she makes local decisions does she write the cheque? That’s not a jibe it is a serious question as I am not educated in these matters. As it happens I agree it was a bit early to open the gate in my personal opinion. Unless your goal is to get the herd thing underway and not get the blame for it 🤭
This might answer your question Alistair.
The Scottish Government raised £941 million less than expected in devolved income taxes in 2017/18, new figures from HMRC reveal today.
Scotland’s economy grew more slowly than the rest of the UK, hitting tax receipts and leaving the Scottish Government with a shortfall in funding.
Because of the risk sharing mechanism in the jointly agreed fiscal framework, the shortfall will be offset by a £737 million increase to the block grant funded by the UK Government. It means the Scottish Government will have to manage a reduction in funding in 2020/21 of £204million.
Scottish ministers are responsible for deciding how to respond. They have powers to borrow up to £1.75billion and a £700million reserve to smooth funding pressures across financial years.
Chief Secretary to the Treasury Liz Truss said:
The 2016 Scotland Act was a major new act of devolution that helps make the Scottish Parliament one of the most powerful devolved parliaments in the world.
This helps to realise all the benefits of the Union as it provides Scottish ministers with substantial powers over taxes and spending for Scotland while still being supported by the broad shoulders of the UK.
But with those new powers, Scottish ministers should take responsibility and focus on the decisions necessary to get Scotland’s economy growing faster to avoid shortfalls in tax receipts.
Calculating the figures is a part of a new annual process called ‘reconciliation’. It was jointly agreed by the Scottish and UK Governments when a new fiscal framework was created alongside the Scotland Act 2016. 2017/18 is the first year in which powers over income tax rates and thresholds were fully devolved to the Scottish Government so this is the first time the reconciliation has operated.
The Scottish Fiscal Commission currently forecasts reconciliation over the first three years will see a c.£1 billion reduction in funding for the Scottish Government, although this is a much larger shortfall than the Office for Budget Responsibility currently expects of around £300million.
Alongside this, public spending statistics published today show spending in Scotland rose to £10,881 per head in 2017/18 from £10,606 the previous year. This compares to the UK average in 2017/18 of £9,350 per head.