• Income tax receipts fall short of forecasts and more money for the Borderlands Growth Deal

    July, 2019
    Unemployment in Scotland was virtually unchanged at 92,000 between March and May, a rate of 3.3%. At 2.6% and 5.6% the SW of England and the North East had the lowest and highest unemployment rates in the country. The UK unemployment rate stands at 3.8%. Scottish average property prices increased by 1.2% to £152,801 during the month which uplifted the annual growth rate to 2.8%. In comparison, UK prices increased by 0.1% to £229,431 during May which reduced the annual growth rate to 1.2%. The amount of income tax revenue raised by the Scottish government in 2017/18 went up by 1.8% but this was £941m short of forecasts according to HMRC figures. It is the first time revenue from Scottish taxpayers has been calculated since the new devolved powers over income tax began in 2017. Under the new fiscal framework, £737m of the £941m will be offset by a recalculation of the Barnett formula which will mean a £204m reduction overall next year. The new system recalculates the block grant to reduce it by the money raised from devolved taxes. Income tax receipts were forecasted at £11.8bn but only £10.9bn was actually raised. The Scottish Government chose not to uplift the higher rate...