Rachel Reeves accused of leaving devolved nations in red after NICs rise

by gottenluck

9 comments
  1. Bbbbbbbbut we’re better together….no?

    Bbbbbbbbut we’re a regional economy so could never survive as a nation 😭

    Bbbbbbbbut other countries became independent and thrive….

    Nnnnnnot us the British media, the British government and the British politicians all tell us we could never survive…. just like they told Malta they would never survive.

    🥸

  2. The balance between public and private sector jobs in Scotland is very different to rUK. It’s a consequence of the Scottish government bloating the public sector.

  3. We raised income tax, no issues, they raised NICs, big issues 

    Fuck off. How about no tax rises altogether, especially when public sector productivity isn’t growing by the same amount as the taxes have been rising 

  4. The SNP are going to save £1bn by eliminating waste though, remember, so they’ll still be £300m a year up.  

  5. >The Welsh cabinet secretary for finance, Mark Drakeford, announced last week that the Welsh government would use £36m annually, taken from its reserves, to plug half the gap, but a further £36m would have to be funded by public sector employers, including health boards, all 22 local councils, Natural Resources [Wales](https://www.theguardian.com/uk/wales) and Cardiff airport. The funding shortage amounts to cuts across the board of about 14%.

    >Drakeford said: “We have made our position very clear with the Treasury that using the Barnett formula in this instance is a breach of the rules. If this was a one-off, we may have been able to use more of our reserves to cover the shortfall, but as it is, this will unfairly impact Wales year after year.”

    I hate this type of party in-fighting, it only gives power to people like Farage  🙈 

    Respectfully, Drakeford is a failed FM, Reeves was elected on a huge mandate to get finances in order, and that’s what she’s doing. This SNP-esque posturing by Welsh Labour is unbecoming. They should focus on reducing the bloated sector and creating opportunities for growth as Reeves has done!

  6. What are devolved nations? I’ve never heard that expression.

  7. The chancellor really shouldn’t have made that commitment. Creating additional payment strands outside of Barnett is problematic for a whole range of reasons.

    From a policy perspective as well, it’s not the UK Government’s responsibility to make devolved administrations, local government or anyone else’s budget whole as a result of a tax rise. It’s not like the Scottish Government repays UK Government staff in Scotland for the additional income tax.

    A higher tax take will generally lead to higher public spending, which will either benefit the devolved areas directly or be accounted for in Barnett consequentials. That’s fair enough.

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