Adjusting the Scottish block grant abatement: the algebra of CM and IPC

Jim Cuthbert, Graeme Roy (Editor)

    Research output: Contribution to journalArticle

    45 Downloads (Pure)

    Abstract

    In the Fiscal Settlement negotiations between the UK and Scottish governments earlier this year, one important element of the debate crystallised around the choice between the so-called CM and IPC methods of adjusting the Block Grant abatement. It is well known that the Treasury's preferred method, the CM approach, exposes Scotland to the risk of relative population decline - but the precise mechanism is not well known. This note develops a simple algebraic expression for the difference between the two methods, and explores some of the implications.
    Original languageEnglish
    Pages (from-to)73-78
    Number of pages6
    JournalFraser of Allander Economic Commentary
    Volume40
    Issue number3
    Publication statusPublished - 13 Dec 2016

    Fingerprint

    Abatement
    Government
    Scotland
    Fiscal

    Keywords

    • Scottish economic activity
    • Scotland
    • fiscal framework
    • HMT

    Cite this

    @article{ca510a51c2b14b2c92d115fd883c87d7,
    title = "Adjusting the Scottish block grant abatement: the algebra of CM and IPC",
    abstract = "In the Fiscal Settlement negotiations between the UK and Scottish governments earlier this year, one important element of the debate crystallised around the choice between the so-called CM and IPC methods of adjusting the Block Grant abatement. It is well known that the Treasury's preferred method, the CM approach, exposes Scotland to the risk of relative population decline - but the precise mechanism is not well known. This note develops a simple algebraic expression for the difference between the two methods, and explores some of the implications.",
    keywords = "Scottish economic activity, Scotland, fiscal framework, HMT",
    author = "Jim Cuthbert and Graeme Roy",
    year = "2016",
    month = "12",
    day = "13",
    language = "English",
    volume = "40",
    pages = "73--78",
    journal = "Fraser of Allander Economic Commentary",
    issn = "2046-5378",
    publisher = "University of Strathclyde",
    number = "3",

    }

    Adjusting the Scottish block grant abatement : the algebra of CM and IPC. / Cuthbert, Jim; Roy, Graeme (Editor).

    In: Fraser of Allander Economic Commentary, Vol. 40, No. 3, 13.12.2016, p. 73-78.

    Research output: Contribution to journalArticle

    TY - JOUR

    T1 - Adjusting the Scottish block grant abatement

    T2 - the algebra of CM and IPC

    AU - Cuthbert, Jim

    A2 - Roy, Graeme

    PY - 2016/12/13

    Y1 - 2016/12/13

    N2 - In the Fiscal Settlement negotiations between the UK and Scottish governments earlier this year, one important element of the debate crystallised around the choice between the so-called CM and IPC methods of adjusting the Block Grant abatement. It is well known that the Treasury's preferred method, the CM approach, exposes Scotland to the risk of relative population decline - but the precise mechanism is not well known. This note develops a simple algebraic expression for the difference between the two methods, and explores some of the implications.

    AB - In the Fiscal Settlement negotiations between the UK and Scottish governments earlier this year, one important element of the debate crystallised around the choice between the so-called CM and IPC methods of adjusting the Block Grant abatement. It is well known that the Treasury's preferred method, the CM approach, exposes Scotland to the risk of relative population decline - but the precise mechanism is not well known. This note develops a simple algebraic expression for the difference between the two methods, and explores some of the implications.

    KW - Scottish economic activity

    KW - Scotland

    KW - fiscal framework

    KW - HMT

    UR - http://www.strath.ac.uk/business/economics/fraserofallanderinstitute/

    UR - http://www.strath.ac.uk/business/economics/fraserofallanderinstitute/economic_commentary/

    M3 - Article

    VL - 40

    SP - 73

    EP - 78

    JO - Fraser of Allander Economic Commentary

    JF - Fraser of Allander Economic Commentary

    SN - 2046-5378

    IS - 3

    ER -