SNP presiding over 'low growth economy' as poor jobs and low wages blamed

A recent report from Audit Scotland warns that Scotland's economy is experiencing low growth, which is weakening the tax revenue benefits to the Scottish budget. This is due to factors such as poor jobs and low wages, a behavioral shift towards increased taxes, differences in income distribution, and volatility in sectors like oil and gas. The devolution of income tax powers in 2018 means Scotland's block grant from the UK Government is adjusted based on its own tax revenue. While Scotland's devolved tax take has increased since 2015-16, the report states this figure should be significantly higher. The Scottish Government is using some of its increased tax revenue to cover money lost due to these block grant adjustments, resulting in a smaller net benefit to the budget than anticipated. Critics, including Scottish Tory finance spokesman Craig Hoy and Scottish Labour economy spokesman Michael Marra, have blamed the SNP's economic policies for this situation, claiming it leads to a "depressing doom loop" and leaves Scotland "more than a billion worse off this year alone," impacting funding for public services. They also criticize the government for a lack of transparency. A Scottish Government spokesman countered by stating that their tax decisions allow for higher investment in the NHS and policies like free tuition, while ensuring most taxpayers pay less income tax. They also pointed to faster GDP per person... download the app to read more