It’s time to give Scotland and Wales a dose of financial reality and rethink the Barnett formula
Subsidies continue to flow from the English taxpayer to the devolved nations of the UK. Boris Johnson is reportedly considering a further massive programme of infrastructure spending to convince the Scots of the benefits of being in the Union. The so-called Barnett formula, put together in the 1970s, already ensures that Scotland always gets more […]
Covid crisis has exposed the Scottish nationalists once again
In London, the Covid virus is disappearing rapidly. Hospital trusts are increasingly reporting days with no new cases at all. During the crisis, there has been a proliferation of home-made signs in rural locations telling city dwellers, with varying degrees of politeness, to turn back and go home. Will we now see messages at junctions […]
Until Scotland’s currency puzzle is solved, independence is economically delusional
The possibility of Scottish independence is back on the political agenda once again. And one question – which currency would an independent Scotland use? – that was crucial in the 2014 referendum has still not been resolved. The informal use of the pound is a very risky option. To see why, the Scottish National Party […]
Scotland’s fiscal fantasy and the impact of an OUT vote
A short visit to the Highlands last week was refreshing. The scenery is just as spectacular as ever, and the people just as welcoming. But elsewhere, the tectonic plates are shifting. Last week, a televised debate took place amongst the political leaders contesting the elections to the Scottish Parliament in May. It resembled a bidding […]
Does Miliband understand the importance of incentives?
Ed Miliband has long had a problem with voters not perceiving him as “normal”. His famous struggle with a bacon sandwich in some ways says it all. But at a much more important level, he seems to have little or no empathy with one of the most fundamental of human motivations. The most profound insight […]
Prospect theory: will the Greeks keep a hold of Nurse?
Will 2015 be the year in which fantasy economics in Europe is finally put to the test? Somewhat to the surprise of many commentators, in December the Greek political class failed to elect a new president even after three attempts. Parliament has now been dissolved and an election will take place on 25 January. The […]
Scotland could be a scientific test bed for monetary theory
According to the Scottish National Party, after the referendum on independence next year, Scotland will be a land of milk and honey. The highest per capita levels of public expenditure in the UK can easily be sustained. The whole of the revenue from North Sea oil and gas will belong to Scotland, regardless of the wishes of […]
