dgp4indy

Economics/Finance

So Rail Nationalisation Is Possible After All!

"The sham of rail privatisation has just been exposed. As the FT has announced: "The British government has suspended the UK rail franchise system in a move that effectively nationalises any losses by railway companies for the next six months — in the latest sign of how the coronavirus pandemic is blighting the economy. The Department for Transport announced on Monday morning that it would temporarily end normal franchise agreements and transfer all revenue and cost risk to the government for at least half a year. Operators will continue to run services day-to-day for a small management fee under an “emergency measures agreement”, it said. So, privatisation was always an upside-only bet. I think this is one decision that never need be reversed."
https://www.taxresearch.org.uk

 

The Barnett Formula Does Not Subsidise Scotland!

"In stark terms and only looking at one of many devolved expenditure areas, the Barnett Formula will withhold from Scotland, over the five years covered by the spending review, enough money to have hired approximately 7,955 additional NHS medical professionals. That is not a bonus – it’s a smoke and mirrors mechanism that aims to reduce the Scottish Government’s spending power in real terms."
https://www.businessforscotland.com

The Accounting Trick That Hides Scotland's Wealth

"Every Westminster Government in your lifetime has knowingly diverted tens of billions of pounds of Scottish revenues to Westminster. This has led to lower investment in Scotland, higher unemployment, lower economic growth, lower standards of living, economic migration and growing inequality and poverty. All of which would not have been the case if Scotland was an independent country..."
https://www.businessforscotland.com

Westminster Secretly Sends Scotland's Budget South

"Thousands of highly paid and skilled jobs that Scotland’s Government pays for are located outside of Scotland. So, the tax and NIC’s, and economic benefits of their wages go to the rest of the UK and not to Scotland. This means, tens of millions of savings and the same in additional new Scottish revenues would be gained in the event of independence."
https://www.businessforscotland.com