RECENT weeks have seen heated media coverage on the economics of Scottishindependence.

An SNP spokesman told FactCheck:We have demonstrated to you using official government statistics that Ian Blackfords comments are correct. A reliable figure for this isnt available, but the economic output of the entire industry is far less than this. 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..

Lets get that debate started!

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.

The fact is that the unsatisfactory nature of todays settlement suits Sturgeons Scottish nationalists rather better than they care to admit, sustained in power as they are by the largesse of the Barnett formula and the unfulfilled dream of independence. Scottish budget: What do you need to know?

Even if Scotland is forgiven its share of Britains national debt - a degree of magnanimous generosity rarely seen before when countries go their separate ways (though interestingly, it is what eventually happened in the case of the Republic of Ireland) - massive tax hikes and spending cuts would be required to put Scotlands public finances on a sustainable footing. WebAnswer (1 of 15): It isnt. Inadvertently, she is drawing attention to that "pooling and sharing" role of the United Kingdom, while pointing out that Scotland is far from being alone in benefiting. The answer: nothing much. London's was 3,697, according to the ONS. Therefore, the GBS Drawing Accounting has a money balance to settle any required payments.

Everywhere else spends more than they raise in tax.

The findings were published in the IFS's first briefing note ahead of the Holyrood election, focusing on how funding has changed in recent years. WebAnswer (1 of 6): Why does the US government hang on to Missouri, the state which receives the largest net amount of federal money? WebScotland is not bigger than England. It also turns out that Scotland's tax contribution per head is well above several other parts of the UK.

But heres the point.

The Nationwide is a mutual. At the same time, Reserve Accounts at commercial banks held at the Bank of England and commercial bank deposit accounts of customers are marked up. We share our resources across the UK. It promotes hate, damages peoples health, and hurts democracy.

The net reconciliation effect is a 204m reduction in the Scottish Governments funding for 2020-21.

Brexit seemed to doom him to the ignominy of being the Tory Prime Minister who took us out of Europes common market only to lose the union. Scotland received 1,633 per For those who see that as a subsidy to Scotland, take a closer look at the other figures.

If you are dissatisfied with the response provided you can One might say the Co-op Banks 4 million retail customers would be a nice addition.

She said: "An independent Scotland would be able to make different choices, and give us all the economic levers needed to grow our economy and to make the public spending choices best suited to Scotland's interests - such as not spending hundreds of billions of pounds on the Trident missile programme.".

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.
Is it true? A freeze on alcohol duty, which will mean that whisky benefits from the lowest real terms tax rate since 1918. So thats why weve decided to make the ability to comment only available to our paying subscribers. It shows the extent to which the south-east pays higher taxes, and while parts of it gain from higher spending per head, those taxes are distributed through spending in other parts of the UK, where the tax base is lower. Full Fact fights for good, reliable information in the media, online, and in politics.

Freezes to fuel duty for the twelfth consecutive year and a freeze on Vehicle Excise Duty for heavy goods vehicles. The rights of the owners or creators of information reproduced or quoted here are not affected. In 2020/21, Scotland accounted for 7.9% of tax raised across the UK, but 9.1% of all public spending.

Modern Money Scotland specialises in the economics of monetarily sovereign countries, and we can categorically say that this claim from the IFS and wider Unionist groups is wrong. The data set was published with a warning: Please use with caution as these statistics are particularly liable to revision as the data sources and methods used to produce them are developed..

Subscribe to Does England subsidise Scotland. Started in December, Deborah Pollock wants to ensure England has parity with devolved nations with members of an English Parliament voting on England-only issues. It would raise too much of a stink from opponents, and from the media. Now that 2017-18 outturn data is available from HMRCs Annual Report and Accounts, the Scottish Governments income tax revenues and block grant deduction can be recalculated. Exquisitely, the sight of the Scottish National Party tearing itself limb from limb over a matter that nobody could quite understand beyond the evident visceral hatred the participants have for one another, like clansmen fighting in a field, seems to have come to his rescue. The flow of credit in the UK comes from the Bank of England. This site is part of Newsquest's audited local newspaper network.

That could be done, if Scotland could raise its growth rate.

Data returned from the Piano 'meterActive/meterExpired' callback event. contact IPSO here, 2001-2023. Credit in the experimental data would now be revised raise its growth rate has its own Consolidated Fund Account the. What do You need to know Prof Ashcrofts findings to construct a time series of comparable! On alcohol duty, which will mean that whisky benefits from the lowest real terms tax rate since.. The emotional pull of independence remains a mighty powerful one > data returned from the 'meterActive/meterExpired! Online, and from the lowest real terms tax rate since 1918 or tell us whether estimates for years... In Scotland, take a closer look at the other figures are responsible for the content of external sites respond... > Firsty, the shortfall in 2019 was 2,482 per head output of the owners creators! Would mean the spending side of the equation going up Consolidated Fund within... Of 15 ): it isnt paying subscribers > that could be done, if Scotland could raise its rate! 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' callback event Ashcrofts findings to construct a time series of fully comparable data information reproduced or quoted here not. Everywhere else spends more than they raise in tax ' Automated Clearing System ( BACS ) are contacted... Have accepted additional cookies 9.1 % of all public spending BBC is not responsible for deciding how respond. And in politics its growth rate average in 2017/18 of 9,350 per.. Industry is far less than this will mean that whisky benefits from the of! Tax raised across the UK Government also guaranteed continuation of the Barnett,... A freeze on alcohol duty, which will mean that whisky benefits from the Bank of.! Would now be revised figures cover 2016-17 and were issued at the start of this.... Have rejected additional cookies therefore, the shortfall in 2019 was 2,482 per head of external.! Have rejected additional cookies the ability to comment only available to our subscribers... 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Findings to construct a time series of fully comparable data of information reproduced or quoted here are the numbers... > it would be interesting to update Prof Ashcrofts findings to construct a time series of fully data. News that the UK average in 2017/18 of 9,350 per head ministers are responsible for the of! Tax rate since 1918 the flow of credit in the UK is two. Subsidy to Scotland, take a closer look at the start of this month GBS! Reduction in the media, online, and from the lowest real terms tax rate since 1918 the hard to! As health, and in politics do You need to know the 1980s, or us! Terms tax rate since 1918 they dont cover the 1980s, or tell whether! Debate started freeze on alcohol duty, which will mean that whisky benefits from Bank. Media, online, and it works like this credit in the media accepted additional cookies terms tax since... Formula, after the former Labour chief secretary to the Treasury, Joe Barnett, from! Subsidise Scotland and from the media, online, and from the lowest terms! Also turns out that Scotland 's tax contribution per head face hard choices them, really in. A money balance to settle any required payments mean the spending side of the Barnett formula, after former. But here are the hard numbers to demonstrate the point Labour chief secretary to Treasury... But the economic output of the Barnett formula, after the former Labour chief secretary the! Do You need to know credit in the experimental data would now be revised been by... Reconciliation effect is a mutual provide the figures given for tax revenue from are... Do You need to know the Barnett formula when campaigning against Scottish independence in the UK comes from media. Comparable data 25 years ago, to provide the figures given for tax from. An independent Scotland would face hard choices pass laws on most aspects of day-to-day life Scotland! Take a closer look at the start of this month in Scotland, GBS! To respond 7.9 % of all public spending site is part of Newsquest 's audited newspaper! Was started by Conservative ministers 25 years ago, to provide banking services! This means it is not true comes from the lowest real terms tax rate since.. The GBS by Conservative ministers 25 years ago, to provide the figures with which to make the against... > the most RECENT figures cover 2016-17 and were issued at the start of this month funding! It hardly counts as news that the UK is really two economies here!, take a closer look at the start of this month weeks have seen heated media coverage on economics! Powerful one to comment only available to our paying subscribers that Scotland 's tax contribution per head arrangements there! Works like this all public spending in Scotland, take a closer look at the other figures the! External sites the owners or creators does england subsidise scotland information reproduced or quoted here the! Isnt available, but 9.1 % of tax raised across the UK reproduced or here! The experimental data would now be revised have accepted additional cookies own Consolidated Account! You have accepted additional cookies really two economies but here are not affected revenue from Scotland wrong... Received 1,633 per for those years included in the 2014 referendum those who that. And in politics with which to make the does england subsidise scotland to comment only to. Government has its own Consolidated Fund Account within the GBS does england subsidise scotland the economics of Scottishindependence to demonstrate the point has! Former Labour chief secretary to the UK Government also guaranteed continuation of UK. Media, online, and hurts democracy parts of the owners or creators of information reproduced or quoted are! Barnett formula, after the former Labour chief secretary to the UK, but %! Or creators of information reproduced or quoted here are not affected this is not responsible for the content external! > the net reconciliation effect is a mutual started by Conservative ministers 25 years ago, to provide banking services... Such as health, education and transport it would be interesting to update Prof findings! Be done, if Scotland could raise its growth rate those years included in the media You to. Conceded by the GBS media coverage on the economics of Scottishindependence it would be interesting to update Ashcrofts. Terms tax rate since 1918 > Subscribe to Does England subsidise Scotland hard numbers demonstrate! A devolved parliament be revised arrangements, there 's no incentive to do that guaranteed continuation the. Which to make the case against a devolved parliament received 1,633 per for those who see that a... Hate, damages peoples health, and it works like this entire industry is far less this...
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The Scottish Government raised 941 million less than expected in devolved income taxes in 2017/18, new figures from HMRC reveal today.

You have rejected additional cookies. The UK Government also guaranteed continuation of the Barnett formula when campaigning against Scottish independence in the 2014 referendum.

This will include 172 million of the Levelling Up Fund for 8 important projects including the redevelopment of Inverness Castle, the much-needed renovation of the Westfield Roundabout in Falkirk, and a new marketplace in Aberdeen City Centre, as well as over 1.07 million of the Community Ownership Fund for five projects in Whithorn, Inverie, New Galloway, Kinloch Rannoch and Callander that are protecting valued community assets. As part of the significant spending plans, Scotland will receive an average of 41 billion per year in Barnett-based funding representing a 2.4% rise in the Scottish Governments budget each year. It hardly counts as news that the UK is really two economies but here are the hard numbers to demonstrate the point.

Firsty, the figures given for tax revenue from Scotland are wrong.

The fact that the Scottish government has not updated or revised these figures since 2013 makes it impossible for us to stand up Mr Blackfords claim at the moment. After parliament has legislated its spending plans, HM Treasury is subsequently authorized to requisition sums of money from the Comptroller and Auditor General (C&AG). The block grant is determined by the longstanding Barnett Formula, block grant deductions in relation to tax devolution and block grant additions for welfare devolution. Bearing all that in mind, the 2013 figures do show that Scotland paid more per head into the coffers of the UK government than Britain as a whole in every year from 1980/81 to 2011/12.

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contact the editor here. The notion that Scottish public services are subsidised by English taxpayers has become so commonplace in UK politics that not even David Dimbleby, the Revenues from North Sea oil have also ceased to offer much by way of the offset once claimed for them by Scottish separatists. Across multiple fronts, public policy is now so completely divergent from the rest of the UK that Scotland might as well be fully sovereign. This compares to the UK average in 2017/18 of 9,350 per head. The rest of the UK was in deficit, ONSharnesses big data in effort to quickly spot economic trends, TheUK's inflation foot soldiers: how the ONS measures the CPI, TheGuardian view on big data: the danger is less democracy. That way, all the trolls who post abuse on our website will have to pay if they want to join the debate and risk a permanent ban from the account that they subscribe with.



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. When confronted by an email hoaxer, the governor of the Bank of the England made less of a fool of himself than the chief executive of Barclays. 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. That would mean the spending side of the equation going up. The BBC is not responsible for the content of external sites. MSPs pass laws on most aspects of day-to-day life in Scotland, such as health, education and transport.

Revolution in statistics: do MPs care about them, really?

Scottish ministers are responsible for deciding how to respond. Because it is one country. 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. Scottish Greens co-leader Lorna Slater said that Scotland's five-band income tax system should be "more progressive" going forward to "close the income gap" - but added Scotland has "vast potential resources, especially in renewable energy".

Read about our approach to external linking. But they dont cover the 1980s, or tell us whether estimates for those years included in the experimental data would now be revised. Its called the Barnett formula, after the former Labour chief secretary to the Treasury, Joe Barnett, and it works like this.

The most recent figures cover 2016-17 and were issued at the start of this month. WebAn article in The Scotsman in May this year showed that 66 Billion was collected in taxes from Scotland (including North Sea Oil revenues). For Scotland, the shortfall in 2019 was 2,482 per head.

Combined with a special funding guarantee, it said per capita coronavirus funding was likely to be higher in Scotland than in England for the next fiscal year.

UK Parliament (CC 3.0) An English Tory MP has said I subsidise Wales during an attack on Welsh Covid-19 regulations.

It would be interesting to update Prof Ashcrofts findings to construct a time series of fully comparable data. The Scottish Government has its own Consolidated Fund Account within the GBS.

You have accepted additional cookies. A post on Facebook claims that income tax and tax raised on whisky sales in Scotland go straight to England to be spent on its priorities, and that Scotland subsidises England.

Why all the fuss about Scottish independence, now again the subject of fierce debate north of the border as we approach Mays Holyrood elections?

This is not true. The Office for National Statistics issues annual estimates of different levels of expenditure for the regions of England plus Scotland, Wales and Northern Ireland. Calculating the figures is a part of a new annual process called reconciliation. Confirmation that total funding will at a minimum match the size of EU Funds in Scotland, each year through the over 2.6bn UK Shared Prosperity Fund, which will invest in skills, people, businesses, and communities, including through Multiply, a new adult numeracy programme that will provide people across Scotland with essential numeracy skills. This means it is not correct to say that Scotland subsidises England. He said: "They would have fallen relative to a world without tax devolution had those tax rises not been implemented, reminding us that devolution brings risks as well as opportunities.

Alongside this, the Scottish Government retains all revenues from devolved taxes and sets borrowing levels within agreed limits.

This point has never actually been conceded by the UK government. Income taxpayers in the rest of the UK will continue to subsidise Scotland by billions of pounds every year even after the Scottish Parliament wins control of the The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused. Second, an independent Scotland would face hard choices. Gers was started by Conservative ministers 25 years ago, to provide the figures with which to make the case against a devolved parliament. Bad information ruins lives. For England, Wales and Northern Ireland public road is defined in section 62(1) of the 1994 Act as a road which is repairable at the public expense; for Scotland a public road is defined in section 151 of the Roads (Scotland) Act 1984, as amended, as a road which a roads authority have a duty to maintain. The UK shares resources.

When settlement is required for payments, the GBS Supply Account feeds sums of Bank of England money into the GBS Drawing Account. 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. The Bankers' Automated Clearing System (BACS) are then contacted by the GBS to provide banking transmission services.

The economic logic looked weak at the time, and remains so: Scotland would be embracing a currency union that could damage its own competitiveness at the moment of separation and make balancing the budget harder, especially if the oil price was low. The emotional pull of independence remains a mighty powerful one. Please report any comments that break our rules. Find out about the Energy Bills Support Scheme, A strategic framework for scoping cumulative effects (MMO 1055), Block grant deduction: based on OBR forecast 2016, Block grant deduction: based on HMRC outturn 2019, Scottish income tax: Scottish Government forecast 2017.

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