Ask yourself: does Scotland cling to England, terrified by the financial consequences of English independence? In the SNP, they privately admit they would love to ditch Gers, but politically, it would be like Donald Trump giving himself a presidential pardon. At the moment they are enjoying exceptional cross party respect throughout the whole of the U.K. They called for more clarity on funding the UK's nations. But they dont cover the 1980s, or tell us whether estimates for those years included in the experimental data would now be revised. It's locked in. So yes, the first minister has a point when she says that the "deficit" numbers underlying Gers are more about London than about Scotland. In Wales' case, we receive about 5.7% of equivalent spending in England because Wales has about 5.7% of England's population. Charles I (19 November 1600 - 30 January 1649) was King of England, Scotland, and Ireland from 27 March 1625 until his execution in 1649. Presumably that is a typo and Im not just being as thick as mince? False. It is all our responsibility to ensure that any government budget is one that redistributes and fully utilizes our resources in the interests of the people. This website and associated newspapers adhere to the Independent Press Standards Organisation's While the exact figure is not yet known, the extra spending will be on top of the public money Northern Ireland already receives. Now obviously, all of these planned budgets went out the window when COVID-19 hit and devasted the health sector, adding billions on to related costs vaccines, PPE and the hideously expensive and unreliable UK Government track and trace system. Spending in London was well ahead of the UK. That could be done, if Scotland could raise its growth rate. To better understand why this is the case we can break down the accounting model of the UK exchequer to explain how the monetary system really works. National wellbeing indicators in Scotland The Scottish government's independence white paper says that, on a population share, Scotland would be entitled to 7.8 billion of the United Kingdom's 93 billion of defence assets (the . They have powers to borrow up. England could gain as they wouldn't have to subsidise Scotland. Scotland is a less private sort of society than England, and its expectations of public authority are higher Therefore, the GBS Drawing Accounting has a money balance to settle any required payments. Block Grant funding for the Scottish Government is the highest since devolution began at around 41 billion a year for 2022-2025. The Barnett Formula is supposed to ensure Scotland, Northern Ireland and Wales receive an amount of money based on their respective populations compared to England. However, the planned budget makes for a good case study. However, the planned budget makes for a good case study. No there is in fact a very strong case for Scotland to be compensated for having already paid more than its fair share of the UKs debt. Now, you might think that when England's NHS budget rises by 3.4%, so should Scotland's. For example, the water industry is publicly owned in Scotland but not in England, Different demographics, such as an older population, may mean more demand in some nations. Tax on Scottish whisky amounts to 20 billion a year. HP10 9TY. If you are dissatisfied with the response provided you can So where would the net flow of credit come from if Scotland became an independent country? This is not true. This is the impact of Westminster's debt loading alone, and upon that accounting trick, rests the entire economic case for the Union. Scottish ministers are responsible for deciding how to respond. Scotland is not subsidised by other regions of the UK - this is an indisputable accounting fact. This exact amount is based on the size of their population. Dont worry we wont send you spam or share your email address with anyone. We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. In July, a group of MPs on the Public Accounts Committee said there was a lack of transparency about how these sort of decisions were made. David Bailey and Ivan Rajic analyse the announcement of two new 'Green Freeports' in Scotland, setting out how the UK and Scottish governments came to an agreement. Read about our approach to external linking. That's where the highest earners and biggest corporations are based. You'll need to choose a username for the site, which only take a couple of moments. Then, based on that calculation, the Scottish Government receives a block grant back from the treasury with which to fund the expenditure it is responsible for under devolution. The SNP are callingfor a second independence referendum and say: Next year we intend to offer the people of Scotland a choice over their future.. Prescription charges were abolished in Scotland in 2011, the rest of the UK still pay their own. The UK's public spending works fairly for Scotland and allows the whole country to pool and share its resources. This website and associated newspapers adhere to the Independent Press Standards Organisation's For 42 years, public spending across Northern Ireland, Scotland, England and Wales has been based around something called the Barnett formula. 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. Read about our approach to external linking. And there have been net repayments of that borrowing of 37.6 billion, none of which have been made in the last nineteen years. Even Lord Barnett creator of the outrageous Barnett Formula has said recently the present situation is unfair to England and Wales. Whilst it is good for our democracy that political activists and commentators take a strong interest in economics, alongside this comes dangerous misinformation. Mr Longworth said: "I don't think England and Wales would be at all impacted by Scottish independence to any great degree, in relation to its economic performance. The figures used by HM Treasury are totally unreliable for all UK territories particularly as they relate to England. Better to have the facts at my finger tips next time! Framed prints of Steven Camley's cartoons are available by calling 0141 302 7000. Funding doesn't have to go on health just because the money went on health in England. They confirm one of the things that Gers showed for that year - UK total expenditure per head was 11,742, while spending per head in Scotland was 13,327. Thread starter Jake; Start date Jan 10, 2012; 1; 2; 3; 4; Answer: No, England does not subsidise Scotland. Weve got the most informed readers in Scotland, asking each other the big questions about the future of our country. . Northern Ireland is set to receive a funding boost, following the restoration of its devolved government. I spent my youth in London being told how much Scotland is subsidised by Westminster. Gordon benefits (not suffers) from dyslexia, and is a proponent of the emerging New Economics School. As for making a PDF for each article, no because they tend to be too long to easily print and they are accessible online. By James Maxwell The notion that Scottish public services are subsidised by English taxpayers has become so commonplace in UK politics that not even David Dimbleby, the supposedly neutral presenter of BBC Question Time, thinks twice about repeating it. Does England subsidise Scotland? On the other hand, Scotland does not subsidise the rest of the UK either. READ MORE:Clearing up the confusion around modern monetary theory and independence. Fact Check: Does London really subsidise the UK? The flow of credit in the UK comes from the Bank of England. In fact, over the five year period, the cumulative increase in Scotlands budget under the Barnett formula is 2.042 billion, but if the English percentage increase was applied the cumulative budget improvement would have been 2.39 billion, a whole 343 million higher across the five years. Again, in 2020/21, Scotland had the lowest score of the four UK nations (Northern Ireland, 7.49; England, 7.31; Wales, 7.30; Scotland, 7.27). 7 Dave Mac Level of anxiety. The last referendum in 2014 was marked by heated debate over the economic prospects of an independent Scotland, and Mr Blackford repeated a claim that was put forward by nationalists at the time, that Scotland has historically subsidised the rest of the UK. It is important that we continue to promote these adverts as our local businesses need as much support as possible during these challenging times. "UK government figures make it absolutely clear that Scotland has subsidised the rest of the UK in most of the last 40-year period." Ian Blackford Ian Blackford, the leader of the Scottish. English income tax is to be paid to Scotland Credit: Photo: Alamy Income taxpayers in the rest of the UK will continue to subsidise Scotland by billions of pounds every year even after the. As well as population, the size of the grant will also be affected by the level of responsibility the devolved governments have for different policy areas. Does anyone know of an add-on to charge in Euros using RMS and have the Royal About 10 ago years my aunty bought her council house for about 15000. Government spending starts off in Westminster, where our politicians debate the allocating of money between each government department. Those ads you do see are predominantly from local businesses promoting local services. Are you sure you want to delete this comment? The experts claim a joint UK-Scotland approach to tackling health inequalities would effectively solve the NHS crisis, with the report suggesting 1,510 emergency beds would be freed up every day . This block grant is not in any way based on the needs of Scotland, or on the levels of revenue generated in Scotland. London's was 3,697, according to the ONS. Lindsay Draffan. The lack of directly comparable data for the most recent years is particularly important, because oil prices crashed after these experimental figures were published, weakening the fiscal position of a notional independent Scotland. What this seems to demonstrate is that the UK as a whole has been '"subsidised" not by London or England but by borrowing money. For example, if health spending increases by 100 per person in England, the devolved governments should receive the equivalent amount. Gordon contributes articles to Business for Scotland, The National and Believe in Scotland. For Scotland, that figure was 2,651 - a big number, no doubt. This is followed by claims from Unionist groups such as These Islands and Scotland in Union that the Scottish economy is subsidised by taxpayers from the rest of the UK. On that measure, Northern Ireland had the highest net fiscal deficit per head, at 4,978, in 2018-2019, followed by: London was one of three regions to record a surplus, at 4,369 per person. New posts Search forums. We have seen first-hand the tremendous ESG credentials that modern offices now showcase and the inspiring workspaces that can be created. Thats if you add up the tax and spending in those years cumulatively, and if you make a number of assumptions about Scotlands finances, all of which are subject to argument. Scotland at 2,713 England at 68 London was one of three regions to record a surplus, at 4,369 per person. If it decides to increase spending in England on an area that is devolvedsuch as healthcare, education, transport or housingthen the devolved nations receive money equivalent to their population size to spend on whatever they choose. Nevertheless, official statistics on Scotlands finances calculate how much tax revenue from a geographical share of North Sea oil and gas flows into UK coffers. So which parts of the UK receive the most government funding and why is it controversial? UK National Asset Register 2007 (most recent edition) UK Oilfields And Boundaries http://en.wikipedia.org/wiki/North_Sea_oil#Reserves_and_production. Spending mechanisms for the Scottish Governments account is like that of other government departments, except its allocation of credit is determined by the Barnett Formula. For Wales, also lacking much of a tax base, it was 4,251. We will do PDF versions of Our Indy FAQ series as those are designed to be short and punchy and accessible to print. The two figures show a striking. When the UK debt repayments are removed from GERS, it shows Scotland has a surplus. Last 100 Speeches Added; . Privacy, terms and conditions. Morton Fraser's real estate team has been involved in some state-of-the-art office development schemes across the country during 2022. This is the impact of Westminsters debt loading alone, and upon that accounting trick, rests the entire economic case for the Union. The Croydon Principle How Westminster secretly sends Scotlands budget south, Britains Broken Economy is holding Scotland back, Why entrepreneurs have supported Scotland the Brief. Perhaps the general public should be made aware of the facts? As a subscriber, you are shown 80% less display advertising when reading our articles. The only figures we can find that go back far enough to shed any light on Ian Blackfords claim are experimental stats published in 2013 which cover the 32 years from 1980/81 to 2011/12. because the figures given are wrong, as is the claim that Scottish income tax goes to England, and the idea that Scotland subsidises English public spending. Hybrid working model after training period. So thats why weve decided to make the ability to comment only available to our paying subscribers. Lets get that debate started! The zero option approach to UK debt whereby therUK is allowed to maintain its claim as the continuing state to the former UK and to adopt all mobile assets and liabilities is the appropriate stance. Well, given Westminster has run a policy of de-industrialisation and financialisation, causing population growth to be slower in Scotland (and indeed the other smaller home nations) then you have fewer people, lower population density and an ageing population and higher levels of poverty. So as well as subsidising the rest of the UK during their working lives they do so again in death. Scotland is not subsidised by other regions of the UK this is an indisputable accounting fact. For those who see that as a subsidy to Scotland, take a closer look at the other figures. Scotland at 2,713 England at 68 London was one of three regions to record a surplus, at 4,369 per person. Gers was started by Conservative ministers 25 years ago, to provide the figures with which to make the case against a devolved parliament. VideoChess gets a risqu makeover, The Nigerian influencers paid to manipulate your vote, How Mafia boss was caught at a clinic after 30 years. Are you sure you want to delete this comment? Its also fine in MS Edge for me. Hide Ad Much of the criticism of the formula is down to the disparity in allocations between the nations, which is usually because it takes the size of each into account. If we look at the difference in total revenue collected and public spending in Scotland, there was a deficit of around 15 billion in 2015/16, whether or not the North Sea is included. That's because Scotland's stuck with this notional deficit. I am Nandan Sinha, a Telecom Professional from India. You might ask who bailed out the Scottish banks. For the purposes of that scheme, weve rated this claim as false Renewable energy was positively mentioned, including the USD 4 trillion per annum investment required by 2030 to reach net zero emissions by 2050. Thus it creates 100% of Scotlands supposed debts and 100% of its phoney deficit. The conclusion that Scotland puts into the British GDP more than it takes out has to be presented as simply and as lucidly as possible, albeit with minimum of vital facts to support. Every other part of England had a "deficit-per-head", with the highest at 3,718 for the north-east. Was having this discussion with a Scot and he was adamant that with the oil, Scotland paid more money to England than it received in subsidies. The vast majority of people, politicians and the media seem to think that Barnett represents a subsidy to Scotland. Then there is a justifiable need to spend more. The Bank of England then issues funds from the Consolidated Fund to credit the GBS Supply Account. We know there are thousands of National readers who want to debate, argue and go back and forth in the comments section of our stories. The most recent figures cover 2016-17 and were issued at the start of this month. So, the UK Parliaments own people dont believe England subsidises the rest of the UK? So where would the net flow of credit come from if Scotland became an independent country? Westminster forced to admit that England does NOT subsidise Scotland Petition makes Westminster confirm that England does not subsidise Scotland GARY Kelly is a well-known stalwart of the Scottish independence movement, but he is a fair-minded sort of guy who wants England to have indy too. contact IPSO here, 2001-2023. However, most tax raised in Scotland including spirits duty does go to the UK government which, via the Treasury, decides how to spend the money. Those ads you do see are predominantly from local businesses promoting local services. A reliable figure for this isnt available, but the economic output of the entire industry is far less than this. Scotland raises 25 billion a year in income tax. Income tax and tax on whisky go to England to be spent on English priorities. 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