Economic case for Indy undermined by Laffer Curve economics

The Scottish Government’s economic case for independence is strong on historical analysis but light on how Scotland would address the challenges it highlights. It also falls into the same complacency as the Treasury paper, in not explaining why current devolved powers have not been fully used to tackle inequality. The Scottish Government has published ’Scotland’s Economy: the case for independence’.  It sets out their analysis of Scotland’s relative balance sheet in terms of public finance and the strengths of the Scottish economy. It then claims a better future is possible if Scotland had access to all the economic and policy levers. The Continue reading

Treasury on financial services

The Treasury has published the latest in their Scotland analysis series on financial services and banking. It certainly raises a large number of challenging issues for the Scottish Government to respond to. However, I have to admit to some irritation as I ploughed through the lengthy document. The general approach is to emphasise the strength of the UK financial services industry and the City. It’s as if the financial crash never happened. And this delusion isn’t limited to the UK government.  In response, Scottish Finance Secretary John Swinney said: “Much of the Treasury paper seems to be based on a flawed, outdated Continue reading

Labour Voices on Scotland’s Future

A new publication from the Red Paper Collective Labour Voices on Scotland’s Future  contains the contributions made to the Powers for a Purpose debate at Scottish Labour Party Conference in April 2013. As well as members of the Red Paper group: Dave Watson of UNISON, Richard Leonard of GMB and Neil Findlay MSP it includes Pat Rafferty of Unite, Anas Sarwar’s introduction of the report from the Devolution Commission and Iona Macdonald whose first vote will be cast in the referendum. Copies are available from the email address below. Speakers can be provided for Labour Party, Trade Union Council or Continue reading

Currency union and buses

Studies on the fiscal implications of constitutional change are a bit like buses, nothing for ages and then a series of contributions all at once. It would be remiss of me not to modestly point out that the Red Paper Collective published one of the earliest contributions to this debate. My chapter in ‘People Power’ last September covered this ground and highlighted the limitations on monetary and fiscal policy of the SNP’s‘Sterling zone’ plan. This plan has been fleshed out in the work of the Fiscal Commission Working Group that I have previously commented on. The Treasury have now chipped Continue reading

Pensions and constitutional change

The Institute of Chartered Accountants of Scotland (ICAS) has published a useful introductory paper on pensions and constitutional change. This is an area of the constitutional debate that has been given little attention so far. We also need to get past the lurid media headlines on the report and the equally inadequate Scottish Government brush off. Difficult issues like pensions cannot be ducked – they are too important to all of us. The paper poses questions covering the state pension, public service pensions and private pension schemes. It also recognises that Scotland only data is limited. The state pension is Continue reading

Tax and spend in an independent Scotland

There has been a lot of interest in the leaked John Swinney memorandum setting out the financial consequences of independence and the Better Together campaign was quick to publish an annotated version. The main charge is the disparity between what they have been considering privately and what they have been spinning. Well shock horror, no great surprise there for any government. The interesting point when you read it in full is the similarity with the detail in the Fiscal Commission report.. So let’s examine some of the key points. They are anticipating the risk of public sector job cuts, pressures Continue reading

UNISON Scotland publishes devolution plan

Yesterday UNISON Scotland launched its latest contribution to the constitutional change debate, ‘A Fairer Scotland – Devolution’.  In the first ‘A Fairer Scotland’ paper we set out our approach to constitutional change. In common with much of the trade union movement, UNISON has not as yet taken a stance on the referendum itself. Instead the union has challenged all parties to the debate to explain how their preferred option will match UNISON’s priorities as laid out in ‘A Fairer Scotland’.  The latest document opens up a debate which has so far focused on fiscal issues and argues that new devolved Continue reading

YES Scotland response to STUC Just Scotland

PRESS RELEASE RED PAPER COLLECTIVE WELCOMES YES CAMPAIGN’S RESPONSE TO THE STUC, BUT FINDS IT TIMID The Yes Campaign has demonstrated that it wants to engage with the Trade Union movement by responding to STUC’s report on A Just Scotland. Although, given the policies constraints of using a shared currency and the EU as envisaged by the Yes campaign, the document asks almost nothing which could not be answered by greater powers to a Scottish Parliament or ideally a federal arrangement within the UK . The report states that “It does not seek to guarantee or predict any one outcome from Continue reading

Red Paper seminar – quick summary

The latest Red Paper seminar was held at the STUC in Glasgow today. Pauline Bryan outlined the purpose of the seminar was to influence the next Red Paper book on constitutional change. Jackson Cullinane set out the background to the Red Paper in Scotland with a class not nationalist perspective on constitutional change. Stands proudly in the Home Rule tradition of the Labour Movement going back to Keir Hardie. He was critical of the Better Together campaign because it was perceived as supporting the status quo. Can agree with much of the Radical Independence vision, but that vision is not Continue reading