Why Scotland’s next government faces tough choices

Scotland receives significantly more funding per person for devolved public services than England, helping to pay for policies like free university tuition and smaller school class sizes. But despite that advantage, performance in parts of health and education remains under pressure, and Scotland’s fiscal outlook is becoming tighter. In this episode, Helen is joined by Mairi Spowage of the Fraser of Allander Institute and IFS Associate Director David Phillips to unpack the big economic and fiscal questions hanging over the Scottish Parliament election. They explain what powers are devolved, where Scotland’s money comes from, how tax and benefit choices have made the system more progressive, and why the next Scottish Government will face difficult trade-offs. They also discuss Scotland’s public service performance after Covid, the risks created by recent budgeting habits, and the issues politicians may prefer not to talk about as manifesto season begins. Become a member: https://ifs.org.uk/individual-membership Find out more: https://ifs.org.uk/podcasts-explainer... 00:00 - Introduction 2:00 - What is devolved to Scotland? 5:00 - Scotland's funding situation 12:00 - How are public services performing? 16:15 - Scotland's education system 18:50 - Why are services struggling? 22:55 - Tax and benefits in Scotland 28:22 - Tough funding outlook 34:20 - Poor budgeting habits 36:30 - What are the different parties offering? 41:21 - What trade-offs aren't being discussed? 45:25 - Conclusion