A ‘Scotland-specific shock’ was forecast back in January triggering additional budget flexibilities for the Scottish Government over the next few years. This article considers whether the shock still holds up in light of the new OBR forecasts for the UK 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.
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?
How should a wealth tax be designed? What and who should be taxed in principle, and would this be feasible in practice? And, given the interest in devolving greater revenue responsibility to the Scottish Parliament, would a wealth tax be suitable for devolution? This article considers some of these questions.