Rishi Sunak UK budget

UK Budget 2021 and implications for Scotland

This was a budget of two parts – more spending in the short term to support mitigate the impacts of covid restrictions, and future fiscal tightening to address concerns about fiscal sustainability. But what were the implications for Scotland?

The effect of Covid-19 on the West Midlands economy

The West Midlands labour market has been sharply affected at the beginning of the pandemic, but its sectoral mix has allowed GDP to start recovering faster compared to rUK once the lockdown was eased. Trade in goods declined significantly in West Midlands due to its reliance on the manufacturing industry. Furthermore, a higher concentration of jobs in low-skilled occupations means that only a small share of employees in West Midlands can work from home.

How progressive is the overall tax burden in Scotland?

The ONS recently published new data for Scotland on tax paid as a percentage of income by household income quantile. Unsurprisingly, some taxes are progressive (high income households pay a larger percentage of income in tax than lower income households) and others are regressive. But is the overall burden progressive or regressive?