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(- Follow the Money! -)
A Forensic walk through who receives Fiscal Grants in the UK and who pays for them......
In every country in the world every citizen either receives from the state or contributes to the state
(- Follow the Money! -)
A Forensic walk through who receives Fiscal Grants in the UK and who pays for them......
In every country in the world every citizen either receives from the state or contributes to the state
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This also applies to regions within countries. In Germany, for instance, most people and regions will receive fiscal grants, and these will be paid for by the richest parts of Germany
https://voxeu.org/article/germany-without-fiscal-transfers
This also applies to regions within countries. In Germany, for instance, most people and regions will receive fiscal grants, and these will be paid for by the richest parts of Germany
https://voxeu.org/article/germany-without-fiscal-transfers
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The same happens in the UK. Only three regions of the UK run fiscal surpluses (they create more wealth than they spend). They are
London
The East
The South East
But what happens at the country level?
That’s easy. There is a very simple formula to calculate whether
The same happens in the UK. Only three regions of the UK run fiscal surpluses (they create more wealth than they spend). They are
London
The East
The South East
But what happens at the country level?
That’s easy. There is a very simple formula to calculate whether
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any of the countries of the UK receive a fiscal grant. It’s this
((x - y) * z)
In this example I’ll use the UK and Scotland but it equally applies to Wales and NI (England doesn’t receive any fiscal grants. It actually pays for them)
any of the countries of the UK receive a fiscal grant. It’s this
((x - y) * z)
In this example I’ll use the UK and Scotland but it equally applies to Wales and NI (England doesn’t receive any fiscal grants. It actually pays for them)
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x = The UK per person Deficit
y = Scotland’s per person Deficit
z = Scotland’s population
We already know these numbers from the Scottish accounts GERS
https://www.gov.scot/binaries/content/documents/govscot/publications/statistics/2020/08/government-expenditure-revenue-scotland-gers-2019-20/documents/main-charts-tables/main-charts-tables/govscot%3Adocument/main-charts-tables.xlsx
x = £829
y = £2,771
z = 5,463,300
£829 - £2,771 = £1,941 (rounded) * 5,463,300 = £10,606m
x = The UK per person Deficit
y = Scotland’s per person Deficit
z = Scotland’s population
We already know these numbers from the Scottish accounts GERS
https://www.gov.scot/binaries/content/documents/govscot/publications/statistics/2020/08/government-expenditure-revenue-scotland-gers-2019-20/documents/main-charts-tables/main-charts-tables/govscot%3Adocument/main-charts-tables.xlsx
x = £829
y = £2,771
z = 5,463,300
£829 - £2,771 = £1,941 (rounded) * 5,463,300 = £10,606m
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So. For 2019/20 Scotland received a fiscal grant of £1,941 per person, which equates to £10,606m
This money is totally free. Not only that but we don’t even pay the interest on it either. The UK has borrowed this money to give us for free and pays the interest on it as well
So. For 2019/20 Scotland received a fiscal grant of £1,941 per person, which equates to £10,606m
This money is totally free. Not only that but we don’t even pay the interest on it either. The UK has borrowed this money to give us for free and pays the interest on it as well
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But that now brings up another problem to solve
Who actually pays for this?
Again, that’s easy. In this case it turns out that England pays for it
Someone must carry the can for all this debt incurred and that someone is England
How can I prove it?
To do that I need to
But that now brings up another problem to solve
Who actually pays for this?
Again, that’s easy. In this case it turns out that England pays for it
Someone must carry the can for all this debt incurred and that someone is England
How can I prove it?
To do that I need to
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delve into another set of accounts. The ONS region and country fiscal balance accounts. The latest version is that for 2018/19
https://www.ons.gov.uk/file?uri=%2feconomy%2fgovernmentpublicsectorandtaxes%2fpublicsectorfinance%2fdatasets%2fcountryandregionalpublicsectorfinancesnetfiscalbalancetables%2ffinancialyearending2019/netfiscalbalance.xlsx
This is a bit more complex than the simple formula but in essence it’s the same thing
delve into another set of accounts. The ONS region and country fiscal balance accounts. The latest version is that for 2018/19
https://www.ons.gov.uk/file?uri=%2feconomy%2fgovernmentpublicsectorandtaxes%2fpublicsectorfinance%2fdatasets%2fcountryandregionalpublicsectorfinancesnetfiscalbalancetables%2ffinancialyearending2019/netfiscalbalance.xlsx
This is a bit more complex than the simple formula but in essence it’s the same thing
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Firstly. What is a Deficit?
A Deficit occurs when you spend more money than you earn in a single year. A Deficit is also a Debt. They’re the same thing but generally a Deficit refers to a single year whereas Debt is the accumulation of all past Deficits less any surpluses
Firstly. What is a Deficit?
A Deficit occurs when you spend more money than you earn in a single year. A Deficit is also a Debt. They’re the same thing but generally a Deficit refers to a single year whereas Debt is the accumulation of all past Deficits less any surpluses
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To show you who pays for Fiscal Grants we will use the accounts for 2018/19 from the ONS
This graphic shows you all the data
To show you who pays for Fiscal Grants we will use the accounts for 2018/19 from the ONS
This graphic shows you all the data
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In this graphic you can see the deficits run up by the 4 home countries and the total deficits at the bottom, which is the UK deficit = £41,373m
In the second column you will see what the deficits for for each country should be
ie: Scotland had 8.19% of the UK population
In this graphic you can see the deficits run up by the 4 home countries and the total deficits at the bottom, which is the UK deficit = £41,373m
In the second column you will see what the deficits for for each country should be
ie: Scotland had 8.19% of the UK population
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and should have run a population % deficit of £3,387m to be paying its way. Unfortunately it ran a deficit of £13,499m
When you take away the deficit we should have run (£3,387) from the deficit we did run (£13,499) you end up with the fiscal grant of £10,112m
and should have run a population % deficit of £3,387m to be paying its way. Unfortunately it ran a deficit of £13,499m
When you take away the deficit we should have run (£3,387) from the deficit we did run (£13,499) you end up with the fiscal grant of £10,112m
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Had I used the formula ((x - y) * z) for calculating fiscal grants as detailed above I would have came up with the same number
So, how do we prove that England pays for it and not the UK?
That’s easy. To understand fiscal grants you need to understand debt allocation
Had I used the formula ((x - y) * z) for calculating fiscal grants as detailed above I would have came up with the same number
So, how do we prove that England pays for it and not the UK?
That’s easy. To understand fiscal grants you need to understand debt allocation
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When calculating who owes debt in a country you apportion it on a per person basis. That is, you take the debt and divide it by the population of the UK and you find out how much debt was run up per person in the UK
For 2018/19 the deficit (debt) was £41,373m divided by the
When calculating who owes debt in a country you apportion it on a per person basis. That is, you take the debt and divide it by the population of the UK and you find out how much debt was run up per person in the UK
For 2018/19 the deficit (debt) was £41,373m divided by the
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population of the UK (66,435,600)
41,373,000,000/66,435,600 = £623 debt per person
Since England has 84.26% of the UK population, that means that it takes on 84.26% of the debt. This is confirmed by the interest paid in this ONS dataset
https://1drv.ms/x/s!Ave7qwXe5NZC71gntRb-DcVVkCyX
population of the UK (66,435,600)
41,373,000,000/66,435,600 = £623 debt per person
Since England has 84.26% of the UK population, that means that it takes on 84.26% of the debt. This is confirmed by the interest paid in this ONS dataset
https://1drv.ms/x/s!Ave7qwXe5NZC71gntRb-DcVVkCyX
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Since we know that the UK ran a deficit of £41,373 and we know that England has 84.26% of the debt then England pays for £34,860m of that deficit even though it only ran up a deficit of £4,954m itself!
And here’s the really cool part of this calculation
Since we know that the UK ran a deficit of £41,373 and we know that England has 84.26% of the debt then England pays for £34,860m of that deficit even though it only ran up a deficit of £4,954m itself!
And here’s the really cool part of this calculation
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You can see that the fiscal grants to the rUK amount to £29,606m
This is the accumulation of the Scotland Wales and NI fiscal grants
It turns out that if you take England’s population share of the deficit (debt) = £34,860 and take away the deficit that England ran (4,954m)
You can see that the fiscal grants to the rUK amount to £29,606m
This is the accumulation of the Scotland Wales and NI fiscal grants
It turns out that if you take England’s population share of the deficit (debt) = £34,860 and take away the deficit that England ran (4,954m)
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You end up with the sum of £29,606m which is the fiscal grants received by the rUK
You can see that I’ve used two totally different formulas to calculate the fiscal grants and both formulas give the same result
As well as taking on the debt (£34,860m) England also pays
You end up with the sum of £29,606m which is the fiscal grants received by the rUK
You can see that I’ve used two totally different formulas to calculate the fiscal grants and both formulas give the same result
As well as taking on the debt (£34,860m) England also pays
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all the interest on that debt.
If we look at the total deficits (debt) of the UK from 1999 to 2019 they amount to the sum of £1,335,051m but England only ran up £742,194m of that debt but it takes on 84.26% of that debt = £1,124,913
Using the method above we can then
all the interest on that debt.
If we look at the total deficits (debt) of the UK from 1999 to 2019 they amount to the sum of £1,335,051m but England only ran up £742,194m of that debt but it takes on 84.26% of that debt = £1,124,913
Using the method above we can then
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calculate the fiscal grants
£1,124,913 (England’s debt share) minus £742,194 (England’s deficits) = £382,719m in fiscal grants to the rUK from 1999 to 2019 (20 years)
England also paid the interest on these grants. Probably £30-£40bn
Add the fiscal grants for 2019/20
calculate the fiscal grants
£1,124,913 (England’s debt share) minus £742,194 (England’s deficits) = £382,719m in fiscal grants to the rUK from 1999 to 2019 (20 years)
England also paid the interest on these grants. Probably £30-£40bn
Add the fiscal grants for 2019/20
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probably around £42bn and this current year (maybe £50bn) and you can see that England has funded the rUK to the tune of well over £500bn in the last 22 years from 1999 to 2022
This isn’t very easy to understand even though it’s just simple arithmetic so read it a few times
probably around £42bn and this current year (maybe £50bn) and you can see that England has funded the rUK to the tune of well over £500bn in the last 22 years from 1999 to 2022
This isn’t very easy to understand even though it’s just simple arithmetic so read it a few times
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Here’s the evidence for the fiscal grant, directly from the UK’s statisticians
Here’s the evidence for the fiscal grant, directly from the UK’s statisticians
