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Re: Scotland

By Dougie MacDougall30/6 12:27Tue Jun 30 12:27:56 2020In response to Re: Scotland

Views: 610

Furlough payments don't come out of the SG budget but it's a mistake - not saying you're doing it but plenty do - to think that ultimately "Scotland" won't pay for it - along with the rest of the UK.

I think the concern right now is that the SG thinks that the UKG is going to pull the plug on furlough and other schemes too soon and that will force them into moving less cautiously on the public health side of things. That's why they are looking for the Treasury to loosen the strings so that the SG can make up and possible shortfall with their own borrowing.

So you're wrong to suggest that the SG doesn't have to balance off the two competing pressures, it does, it just has very limited powers on the finances side to actually do what it thinks is the right thing.

I think - more than anything - COVID has shone a massive light onto the limitations of the devolved system.

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