Interesting letter in the Edinburgh News today.
Also, I bet that most people don't realise that half of what they're paying when they fill up (with extontionately priced petrol) is going to the UK Government.
The block grant from which the Scottish Government must fund public services is just a portion of the money Scotland sends to Westminster. The rest London retains, including money Scots pay for VAT.
Add 11 per cent inflation for the poorest households and an economy in a nosedive and you get huge pressure to protect the most vulnerable on a finite budget – hence the ‘black hole’.
The unfairness of the devolution settlement is that the UK Government gets the inflation windfall from increased VAT and fuel duties, as much as £30bn this year, and doesn’t share this with the devolved nations. If it was shared, the Scottish Government’s budget problem would vanish. In effect, Scotland pays an ‘inflation penalty’ for being a UK region.
The solution is not to renegotiate a settlement the dysfunctional UK Government is busy dis-mantling after a disastrous Brexit. Rather it is to take back control of our nation.
It means managing our economy, resources, investments, foreign policy and international trade for the benefit of the people of Scotland.
Leah Gunn Barrett, Edinburgh.