Summary

This response outlines several key themes the Scottish Government should reflect upon as it considers how best to utilise the 2021/22 Budget to support the post-Covid-19 economic recovery. First of these themes is the importance of Scottish Government identifying the types of fiscal response, at the UK level, which would be of most value to the Scottish economy and engaging constructively with the UK Government to advocate for them.

The paper also stresses the severity of the economic situation Scotland currently faces and the need for significant funding for capital investment, the importance of not mis-timing fiscal consolidation, and for measures to be taken at the UK level to assist the devolved administrations in their long term fiscal planning.

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