Analysis of Jackson Carlaw’s income tax proposals

Earlier this week, Scottish Conservatives leadership candidate Jackson Carlaw committed to close the income tax gap between Scotland and rUK for those earning between £27,000 and £45,000. The majority of individuals with income in this range (those with incomes less than £43,430) currently face annual income tax liabilities of up …

Analysis of Jackson Carlaw’s income tax proposals Read More »

FAI Commentary: The outlook for the Scottish Budget 2020/21

This blog post contains the policy context chapter of our economic commentary, published today. The latest economic commentary can be found here. Budget 2020/21 will be the fourth of five to be set in this parliament. Normally of course it would have been published by now – the Scottish Government …

FAI Commentary: The outlook for the Scottish Budget 2020/21 Read More »

Has the Scottish Government received a £700m ‘bail-out’ from the UK Government?

Last week, we had the first set of income tax reconciliations for Scotland’s new fiscal framework. For the coming year, that reconciliation figure will be around £200m. In the aftermath of the publication of these figures, there were reports that Scotland was also in receipt of a £700m ‘bail-out’ from …

Has the Scottish Government received a £700m ‘bail-out’ from the UK Government? Read More »

Today’s Income Tax Reconciliations from HMRC: confirmed £200m shortfall in funding to hit next year

Today, HMRC published the first ever figures on the scale of ‘income tax reconciliations’ for Scotland. These ‘reconciliations’ – whilst being a largely dry technical issue – are a key part of Scotland’s new fiscal framework. These income tax reconciliations are reflections of the fact that Scottish budgets are initially …

Today’s Income Tax Reconciliations from HMRC: confirmed £200m shortfall in funding to hit next year Read More »

Medium Term Financial Strategy: where’s the medium-term focus or strategy?

Last week, the Scottish Government published its 2nd Medium Term Financial Strategy (MTFS). The purpose of the MTFS, as set out by the Parliament’s Budget Process Review Group, was to ‘provide a means of focussing on the longer term sustainability of Scotland’s public finances’. This is clearly a positive and …

Medium Term Financial Strategy: where’s the medium-term focus or strategy? Read More »

What is the case for increasing council tax rates in Scotland?

This blog shows that council tax rates are now markedly lower in Scotland than in England and Wales. Increasing council tax in Scotland to match rates in Wales (or England) would raise substantial revenues, but would have adverse distributional implications. On balance, the case for more fundamental reform of property …

What is the case for increasing council tax rates in Scotland? Read More »

VAT assignment: paused for now, but will it be pulled for good?

The Scottish Government announced last week that the assignment of Scottish VAT revenues to the Scottish budget is likely to be delayed – possibly until after the fiscal framework review in 2022. Giving evidence to the Finance and Constitution Committee last week, Derek MacKay said: ‘I am becoming increasingly minded …

VAT assignment: paused for now, but will it be pulled for good? Read More »