Getting to a Wealthier and Fairer Scotland

Scotland has some of the prerequisites for a social investment state. Yet the division of powers between the Scottish and UK levels in relation to taxation and welfare is not optimal. The Scottish Government has reformed its policy-making structures but still has shortcomings in planning for the long term. While public opinion in Scotland supports spending on public services from which citiziens benefit, it is only slightly more favourable to redistribution than in England. The experience of other counrties shows that citizens will support public spending and the resultant taxes if they know that they will get good services.

Towards a Fairer Scotland? Assessing the Prospects and Implications of Social Security Devolution

Following the Scotland Act (2016), the Scottish Parliament now has significant autonomy over aspects of social security. This chapter examines the scope of the new social security powers and some early decisions on their implementation. It suggests that the focus of the new powers, their interdependence with the UK welfare system, and demographic and financial challenges will constrain radical change.

Inequality in Scotland: Dimensions and Policy Responses

Inequality has different dimensions. This chapter focusses on standard measures of income differences between households at a point in time, but also considers inter-generational and spatial inequalities as well as inequalities of wealth. It discusses explanations of recent changes in inequality and the tools that sub-national governments have to influence local inequality levels. Finally, it extends the discussion to discuss inequalities in “social” income – how equally or unequally public services are provided.

The Political Economy of Devolution

Small, devolved nations and regions lack major macro-economic powers. Yet in the context of spatial rescaling they have become important levels for managing economic growth and social cohesion. They may be exposed to a ‘race to the bottom’ by the need to attract investment capital. Yet, by adopting social investment strategies they can rec.oncling growth with social inclusion. The key factor is the institutional capacity to plan for the long term, to set priorities and to sustain cooperation among the social partners.

A More Gender-Equal Scotland? Childcare Policy in Scotland after the Independence Referendum

The independence referendum campaign provided opportunity to focus on and debate a number of policy areas that may have been strongly affected by Scottish independence. One of these policy areas was childcare, with the Scottish Government’s white paper stating the importance childcare provision for the future economic growth of an independent Scotland. Despite the resulting No vote in the referendum, childcare remains a salient policy issue in Scotland. This chapter looks at the role childcare plays in promoting gender equality. Firstly, it looks at what sort of childcare systems promote gender equality and their link to family policy, drawing upon examples from places like Sweden, Iceland and Quebec. Secondly, it looks at the options that the Scottish Government has in the context of further devolution.

Constitutional Change, Social Investment and Prevention Policy in Scotland

The prospect of Scottish independence allowed commentators the chance to reconsider the Scottish Government’s social policy choices. The idea of ‘social investment’ grew in importance since it fits well with the vague notion that Scottish independence is a social democratic project, offering an alternative to ‘austerity politics’ and ‘neoliberalism’. It also complements an existing Scottish Government agenda to reduce inequalities and address its decreasing budget by reducing acute public service demand through ‘early intervention’ and ‘prevention’ policies. However, this chapter identifies a limited impact of such developments on government policy. Social investment is rarely properly defined, and prevention often describes a broad aspiration rather than a specific policy agenda. Policymakers are pursuing a vague solution to an unclear problem. This chapter discusses how key actors can take forward this agenda, to learn from international experience and from domestic experiments with ‘evidence based policymaking’.

Taxes and Spending

Scotland will soon have one of the most powerful devolved governments in Europe, measured in terms of the percentage of public spending and tax revenues under its control. This chapter sets out the new fiscal powers of the Scottish Government, and explores the likely impact of using current, and potential future, fiscal levers to stimulate the economy. The likely success of such policies is shown to depend upon: the structure of the Scottish economy; the attitudes of the Scottish people to tax and spending decisions, and on the ability of public spending to enhance the supply side of the economy.