Public Expenditure In Scotland, and Monitoring the Financial Aspects of
Devolution.
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A Critique of GERS: Government Expenditure and Revenue in Scotland
Cuthbert, J.R., Cuthbert, M.: Fraser of Allander Institute Quarterly Economic Commentary, vol 24, no.1 (1998).
This paper is a critique both of the detail in GERS, and of the way GERS is
commonly used.
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The Implications of the Barnett Formula
Cuthbert, J.R. : Saltire Paper no.1, (1998).
Initial paper on Barnett squeeze: points out the likely long term problems which the Barnett formula is likely to imply for the funding of the Scottish Parliament, and some of the resulting implications.
Income Tax and the Funding of the Scottish Parliament
Cuthbert, M., Cuthbert, J.R.: Saltire Paper no.1, (1998).
Early analysis of various aspects of income tax raising powers of Scottish Parliament. Identifies various problems with use of these powers, related to the perverse way in which the funding arrangements for Scottish devolution have been organised.
Monitoring the Financial Aspects of the Devolution Settlement: Issues and
Data Requirements
Cuthbert, J.R., Cuthbert, M.: Fraser of Allander Institute Quarterly Economic Commentary, vol 24, no.4, (1999).
To some extent overtaken by the later monitoring paper below, (FOA, Dec
2002), but still contains relevant material, e.g., on whether Scotland actually
fully benefits from European funding.
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A Tax Whose Time has Passed
Cuthbert, J.R.,
Cuthbert, M.: in “Scotland’s Enterprise Deficit”, Policy Institute,
Edinburgh, (2000).
This paper deals with the dilemma posed by Non Domestic Rates in the
devolution context. Also has more general implications for the debate about
fiscal autonomy.
The Barnett Squeeze in Spending Review 2000
Cuthbert, J.R., Cuthbert, M.: Fraser of Allander Institute Quarterly Economic Commentary, Vol 26, No2: (May, 2001).
The Barnett squeeze is important for understanding the context of Scottish
Executive budget decisions. This whole question will become much more relevant
if, as seems inevitable, we are moving into a period of relative public
expenditure restraint.
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See also accompanying tables.
The Effect of Relative Population Growth on the Barnett Squeeze
Cuthbert, J.R: Fraser of Allander Institute Quarterly Economic Commentary, Vol 26, No2: (May, 2001).
A fairly technical topic: but sobering on the extent of Scotland’s relative
population decline: and essential for understanding how this will impact on
convergence in per-capita spending levels.
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paper
See also
accompanying
charts.
The Treasury Funding Statements as a Tool in Monitoring the Devolution
Settlement
Cuthbert, M., Cuthbert, J.R: Fraser of Allander Institute Quarterly Economic Commentary, Vol 27, No4: (December, 2002).
This paper demonstrates the
importance of the Treasury funding statement in the monitoring context, since it
is the only source which shows in detail where the reserved/devolved boundary
lies. The paper also points to a number of areas where Scotland is losing out
because the interface with Whitehall departments is not working properly.
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paper
Monitoring and Measurement Issues Posed by Devolution in the United Kingdom
Cuthbert, J.R., Cuthbert, M: invited paper given at conference on
Measuring Government Performance, organised by the Statistics User Committee, at
the Royal Society, London, (November 2003).
Overview of issues involved in monitoring devolution.
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A Constructive Critique of the
Treasury's Country and Regional Analysis of Public Expenditure
Cuthbert, J.R., Cuthbert, M: Fraser of Allander Institute
Quarterly Economic Commentary, Vol 30, No.3: (2005).
This paper, based on data obtained under the Freedom of Information Act,
demonstrates substantial weaknesses in the Treasury’s published data: for
example, the Treasury’s comparison of identifiable expenditure between Scotland
and England excludes £4.4 billion of expenditure from the English side of the
comparison, where expenditure on the corresponding services is included for
Scotland. Extensive proposals are suggested for improving the Treasury data
which, if implemented, would also have a positive effect on service delivery.
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paper
Illuminating Whitehall's
Disinterest
Cuthbert, J.R., Cuthbert, M.: (importance of Freedom of Information Act): Scottish Left Review, Issue 31:
(November/December 2005).
Demonstrates the importance of the Freedom of Information Act in shedding light on devolution: and makes a strong case for the Act not to be modified, (as is currently threatened).
Comment to Treasury on their response to the Public Expenditure Statistical Analysis user consultation.
Cuthbert, J.R., Cuthbert, M.: ( August 2006).
In 2005/06, the Treasury carried out a consultation on the development of the key Public Expenditure Statistical Analyses: (see relevant page on Treasury website). Our first response to this consultation was to submit our "Constructive Critique" paper- see above. The Treasury response to the overall consultation is a disappointing document. This note is our comment on the Treasury response.
Some Assorted Problems with Statistical and Economic data, and Their Implications.
Cuthbert, J.R., Cuthbert, M.: talk given at Statistics Commission Seminar on "Do we have the data we need to measure the economy in Scotland?", Royal Society of Edinburgh, September 6th 2006.
By focussing on a number of specific examples, identifies a number of areas where significant improvements are required.
Cuthbert, J.R., Cuthbert, M.: open letter to Wendy Alexander, M.S.P., dated 24 March 2007.
An open letter to Wendy Alexander, convenor of the Finance Committee of the Scottish Parliament. We were invited to appear before the Finance Committee on 16th January, when they were considering GERS, but declined the invitation. However, since January we have done substantial further work on GERS, and have identified some very significant new errors. This open letter brings this work into the public domain, and contradicts the views on the quality of GERS expressed by several of the panel on 16th January.
Time to Stop the Abuse of GERS.
Cuthbert, J.R., Cuthbert, M.: Scots Independent, April 1st 2007.
Builds on recent work we have carried out on GERS: highlights a very misleading use of GERS in guidance material issued by Learning and Teaching Scotland, ( a government funded quango), in connection with the Higher Level Modern Studies examination.
Government Expenditure and Revenues in Scotland (GERS)
Cuthbert, M., Cuthbert, J.R.: Powerpoint presentation of seminar given at University of Edinburgh, Centre for Public Health Policy, 23rd April, 2007.
Seminar at Edinburgh University summarising our findings, conclusions and recommendations on GERS.
How Scotland will be Disadvantaged in the Longer Term by Recent Changes in Government Accounting for European Structural Funds
Cuthbert, J.R., Cuthbert, M.: Fraser of Allander Institute Quarterly Economic Commentary, Vol 31, No.4: (July 2007).
Explains how a recent change in the Treasury rules for accounting for European Structural Fund receipts means that Scotland will be materially damaged in the longer term- and suggests what needs to be done to rectify the situation.
A New Twist to an Old Scandal: How Recent Changes in Government Accounting for European Structural Funds Mean that Scotland will Lose Out
Cuthbert, J.R., Cuthbert, M.: Scots Independent, Issue 942, August 1st, 2007.
A less technical version of the preceding paper.
Opening up the books on the true state of Scottish finances
Cuthbert, M., Cuthbert, J.R.: Sunday Herald, 22nd June, 2008.
This article welcomes the appearance of the Scottish Government's latest GERS publication. The latest GERS incorporates significant methodological improvements over earlier versions. There is still, however, plenty of scope for further improvements, both in GERS, and Scotland's wider economic statistics.
Perverse Incentive Effect of the Calman Income Tax Proposals
Cuthbert, J.R.: note sent to Scottish Government, June 2009.
Identifies a perverse incentive effect which is implicit in the Calman income tax proposals, and which could pose a grave threat to a Scottish government operating under the Calman rules.
Open Letter to the Calman Commission: Technical Failings in the Calman Proposals on Income Tax
Cuthbert, J.R., Cuthbert, M.: open letter sent to Calman Commission secretariat, 16th July 2009.
Builds upon material in immediately preceding paper, and identifies technical flaws in the arrangements for a Scottish income tax proposed by the Calman Commission - then examines the likely consequences. Among these is a real danger that the proposals, if implemented would force a Scottish government into a deflationary trap. Also proposes solution to identified problems.
How Calman's Income Tax Proposals Set a Trap for Scotland
Cuthbert, J.R., Cuthbert, M.: Scots Independent, Issue 966, August, 2009.
This article is a more accessible version of the material in our open letter to Calman.
French and German Recovery: What Does this Say about the Euro?
Cuthbert, J.R., Cuthbert, M.: Scots Independent, Issue 967, September, 2009.
Points out that recent news that the French and German economies may be starting to recover in fact highlights worrying evidence of a growing split in the eurozone, with a number of economies suffering a growing loss of competitiveness relative to the eurozone core.
Do Official Statistics Provide an Adequate Basis for the Debate about the UK Economy?
Cuthbert, J.R.: Invited talk given at Royal Statistical Society Conference, Edinburgh, 11 September 2009.
This is the slightly expanded, (by inclusion of fuller references, etc), version of the talk. The talk uses three illustrative examples to argue that official statistics has failed badly.
Do Official Statistics Provide an Adequate Basis for Debate about Scottish Independence: or, indeed, about the process of devolution.
Cuthbert, M.: Invited talk given at Royal Statistical Society Conference, Edinburgh, 11 September 2009.
This is the full version of the paper on which the talk was based.
Correspondence with Scotland Office about Calman tax proposals.
Cuthbert, J.R., Cuthbert, M.: October 2009.
After submitting our open letter to Calman, we had a meeting with Scotland Office officials. The Scotland Office subsequently emailed the Canadian Professor Boadway, for his advice on two issues. This is our reply, which is essentially self explanatory, to the email we subsequently received from the Scotland Office.
Calman White Paper Makes Things Worse on Tax
Cuthbert, J.R., Cuthbert, M.: Scots Independent, Issue 971, January, 2010.
This article points out that, under the transitional arrangements proposed in the Westminster government's White Paper on Calman, the technical problems we identified with the original Calman tax proposals would be much worse: under the transitional arrangements, there would be no possibility of the Scottish government lowering its tax rate, and at the same time increasing its revenues.
Issues on Calman Tax Proposals Still Unresolved
Cuthbert, J.R., Cuthbert, M.: Fraser of Allander Economic Commentary, Vol 33, No. 3, February 2010.
This is our definitive account of the technical problems with the income tax proposals in Calman, as amended by the Westminster government White Paper. We show that, far from addressing the problems with the original Calman proposals, the transitional arrangements in the White Paper would actually place a Scottish government in an even worse fiscal trap.
Murphy's £75 billion Claim Leaves a Bad Taste
Cuthbert, J.R., Cuthbert, M.: Scots Independent, Issue 973, March, 2010.
Jim Murphy's department, the Scotland Office, recently produced a report arguing that Scotland had experienced a £75bn bonus from devolution. This is a critique of the Scotland Office paper. We also argue that the debate on Scotland's economy and future is unlikely to move on until an integrated set of accounts is produced, giving a complete picture of the financial flows into and out of the Scottish economy, (and including oil as an integral part of the economy.)
Cuthbert, J.R., Cuthbert, M.: Public Finance, 11th March 2010.
This is a more popular version of the above Fraser of Allander paper on Calman.
Cuthbert, M., Cuthbert, J.R.: Scots Independent, Issue 974, April 2010.
Critique of a report produced by the Centre for Public Policy for Regions, looking at the fiscal balance of an independent Scotland.
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Response to the second question on the consultation
paper, relating to question 1 in the referendum.
Cuthbert, J.R., Cuthbert, M.: Response to Scottish Government consultation on draft Referendum (Scotland) Bill: April 2010.
This response to the referendum consultation is about the possible question dealing with implementation of the Calman proposals on income tax. Our response builds on our previous research on Calman, and argues that, given the flaws in the Calman proposals, the option of implementing Calman should not be included in the proposed referendum.
Scotland and the UK National Debt: Further issues arising from the CPPR report.
Cuthbert, J.R., Cuthbert, M.: Scots Independent, Issue 975, May 2010.
This continues the critique of the CPPR report which we began in our last Scots Independent article. This article looks particularly at the question of Scotland and the UK national debt, and argues that this issue is much less of a concern when viewed in the context of the overall net worth of the public sector.
Welsh Exercise on Needs Sets a Trap for Scotland
Cuthbert, J.R., Cuthbert, M.: Scots Independent, Issue 976, June 2010.
This is a critique of a recent report produced for the “Independent Commission for Funding and Finance for Wales.” We argue that the Welsh analysis is an inadequate way of assessing the need for public services. More importantly, we also argue that “need for public services” should not be the primary focus: much more important is to consider the need for achieving better economic balance between the different parts of the UK.
The Osborne Budget: Implications for Scotland
Cuthbert, J.R., Cuthbert, M.:Scots Independent, Issue 977, July 2010.
First of two articles looking at the likely implications for Scotland of the Osborne budget – and why these are likely to be dire. Against this background, the Westminster government is likely to attempt shift responsibility for the coming pain by implementing the Calman tax proposals, or some other package of limited fiscal autonomy. We argue that any such scheme offered by Westminster is likely to be inadequate and damaging: and hence should be treated with great caution.
Time to Move Beyond GERS: An Approach to Estimating Flows of Private Finance for the Scottish Economy
Cuthbert, J. R. Paper SESCG 2010/1/2 discussed at Scottish Economic Statistics
Consultants’ Group, at meeting on 18 October 2010.
Suggests that, instead of regarding the financial flows on Scotland’s
government account in isolation, (essentially, the traditional GERS debate),
these flows should be seen as one component in a more integrated set of
accounts: and addresses some of the issues involved in estimating key aggregates
in this wider approach.
Holtham Misrepresents our Position on Welsh Needs Exercise
Cuthbert, J. R., Cuthbert, M.: Scots Independent, Issue 981, November 2010.
Following our critique of the Holtham Commission work on needs assessment, (see above), a response by Holtham was published in the October 2010 Scots Independent: Holtham’s response can be accessed here. This is our reply to Holtham, showing that he has significantly misrepresented our views.
The Budget: Issues and Challenges.
Cuthbert, J. R., Cuthbert, M.: Scots Independent, Issue 982, December 2010.
This is our comment on the Budget which John Swinney presented to the Scottish Parliament on 17 November.
Flawed Scotland Bill Tax Proposals – A Trap for Labour
Cuthbert, J. R., Cuthbert, M.: Paper published on Scottish Left Review website, December 2010, and in printed edition of SLR, issue 62.
This article points out the flaws in the income tax proposals in the recently published Scotland Bill: and also points out the political implications, which are likely to affect Labour in particular.
Wendy’s Committee Fails Scotland Badly.
Cuthbert, J. R., Cuthbert, M.: Scottish Left Review Issue 63, March 2011.
Shows how evidence given to the Scotland Bill committee, arguing against our critique of the tax raising powers in the Bill, is flawed. Also shows how later work we have carried out strengthens the concern that flaws the proposed tax arrangements will lead to the income tax rate in Scotland being too high.
Why a Scottish Government, operating under
Calman, will always raise more in tax for a given increase in tax rate than an
independent or UK government facing the same Laffer curve.
Cuthbert, J. R.
Technical note referred to in the preceding paper.
Self Delusion at Holyrood on Scotland Bill
Cuthbert, J.R., Cuthbert, M.: Scots Independent, Issue 986, April 2011.
This paper points out the deficiencies in the scrutiny of the Calman tax proposals carried out by the Scotland Bill Committee of the Scottish parliament.
Evidence given to Scotland Bill Committee of Scottish Parliament, in preparation for appearance before committee on 13 September 2011
Cuthbert, J. R., Cuthbert M.
We argue in this evidence that there are technical flaws with the Scotland Bill income tax proposals. The effect is likely to be that a Scottish government operating under these rules would set a tax rate which is too high. This is likely to have adverse deflationary effects on the Scottish economy.
An Appearance before the Scotland Bill Committee
Cuthbert, J. R., Cuthbert M.: Scots Independent, Issue 992, October 2011.
This article reports on our appearance at the Scotland Bill Committee on 13th September. Far from allaying our concerns about the damaging effects of the Scotland Bill income tax proposals, the discussion and other evidence in fact confirmed our worries.
Cuthbert, J. R., Cuthbert M.: Chapter in the book “Scotland’s Economic Future” edited by Donald MacKay, published by Reform Scotland, October 2011.
We show how GERS, from its inception, was an essentially political document: and how, despite recent technical improvements, it remains the focus of an inherently sterile annual debate. What we argue is that the key to moving on to an altogether more productive debate is to replace the partial treatment in GERS with a full set of balanced accounts, showing all of the external flows into and out of the Scottish economy.
Cuthbert M., Cuthbert J. R.: Public Finance, Blog Section, 8th December 2011.
Shorter version of the paper described in the next entry.
How the Proposed Changes in the NHS in
England will have serious Repercussions for Scotland and Wales.
Cuthbert M., Cuthbert J. R.: Scots Independent, Issue 995, January 2012.
Explains how the proposed NHS reforms in England will adversely affect the Scottish Government’s budget: and therefore why, counter to the conventional unionist view of the West Lothian question, Scottish MPs should be voting at Westminster on this issue.