Scotland has never had it so good

Thanks to the threat of independence, Scots have – in the words of Harold Macmillan – ‘never had it so good’. Scotland’s current position within the United Kingdom, in which it can hand out many social benefits to its citizens without actually paying for them strongly encourages fiscal profligacy. And why not? Who would argue against greater NHS spending, free prescriptions, or free higher education when the cost will be shared with our English neighbours?

The effective scrapping of the Universal Credit two-child limit in Scotland is the latest example that shows how the current situation benefits the country. Just last week, the Scottish Fiscal Commission published estimates of the cost for mitigating the Universal Credit two-child limit in the country – a divergence from Westminster policy which is projected to cost Holyrood between £150 and £198 million per year. When enacted in 2026, this will further widen the gap between financial entitlements in Scotland versus England, with Scots already benefitting from unique forms of support such as the Scottish child payment and the pension-age winter heating payment.

Paying Scotland off to stick around is nonsensical

This comparative generosity, from a nation not renowned for it, is possible largely due to the favourable initial terms of the block grant given to Scotland by Westminster and the continued use of the Barnett Formula, which determines the allocation of fiscal resources between the Scottish and British government.