Building a New Scotland: A stronger economy with independence
This paper sets out the Scottish Government’s proposals for the economy of an independent Scotland. It explains what these proposals would mean for you, for businesses, and for Scotland as a whole. It is the third in the 'Building a New Scotland' series, focusing on independence.
Automatic stabilisers are government policies that offset economic fluctuations through their normal operation, without additional intervention by government. For example in times of weak economic performance and higher unemployment, spending on employment support increases due to an increase in claimants, supporting consumer demand without additional government action
The Block Grant is the grant received by the Scottish Government and other Devolved Administrations as part of the current cross-UK funding arrangements. Changes in the Block Grant are determined by the Barnett Formula, which provides the Devolved Administrations with a proportion of increases or decreases in UK expenditure on devolved policy. Further detail on the operation of the funding arrangements are set out in: Scotland’s Fiscal Outlook: The Scottish Government’s Medium-Term Financial Strategy and Fiscal framework technical note: May 2022
Carbon Capture and Storage (CCS)
Carbon Capture and Storage (CCS), where Carbon dioxide (CO2) can be captured, transported and stored in depleted oil and gas fields.
Collective bargaining is the official process by which trade unions negotiate with employers, on behalf of their members
Common Travel Area
The Common Travel Area is a special travel zone between Ireland and the UK, Isle of Man and Channel Islands. It dates back to the establishment of the Irish Free State in 1922. Nationals of Common Travel Area (CTA) countries can travel freely within the CTA without being subject to passport controls
A currency peg is where a national government or central bank sets a fixed rate of exchange for its own currency against a foreign currency (or a basket of currencies). A currency peg is often used to encourage trade between countries.
The financial system comprises money, financial instruments, financial markets, financial institutions, regulatory agencies, and central banks
Foreign Direct Investment
Foreign Direct Investment (FDI) or inward investment (which includes investment from the rest of the UK into Scotland) involves a company or institution headquartered outside of Scotland that establishes a base of operations within Scotland, creating jobs, economic opportunities and associated capital investment
Gross domestic product
Gross domestic product is the standard economic measure of the total value of goods produced and services provided in a country during one year
Gross value added
Gross value added (GVA) is the standard economic measure of the value of goods and services produced in an area, industry, sector or region of an economy
The rate of inflation is the change in prices for goods and services over time. Measures of inflation and prices include consumer price inflation, producer price inflation and the House Price Index (ONS)
Natural capital is the environmental resources (e.g. plants, animals, air, water, soils) that combine to yield a flow of benefits to people.
Productivity is commonly defined as a ratio of a volume measure of output to a volume measure of input use
Real wages are wages adjusted for inflation
Single Trade Window
An online IT system offering a single point of entry for traders to submit all customs and regulatory information for cross-border movement of goods
Small and medium-sized enterprises
Small and medium-sized enterprises are businesses with up to 250 employees
Sovereign debt is issued by a country’s government to borrow money, usually in the form of securities. It is also known as government debt, public debt, or national debt.
There is a problem
Thanks for your feedback