CURRENT ACCOUNT DEFICIT SHOCKER

4 July 2022

LEVELLING UP SHOULD INCLUDE THE SOUTH-EAST

Ref the UK government's decision to take £100 million from the devolved budgets of Scotland and Wales for military aid to the American war in Ukraine.

First of all, we will make sure that we understand what the news article is talking about. Then we will define "devolution" and we will consider whether this re-purposing by the UK government of assistance it had previously given is morally ok or not. Then ask what the the subordinate governments can do about it if anything and what Westminster government could or should have done instead.

So here's the news article:

Looks like Boris' Westminster govt has simply reallocated the money previously given to the two devolved governments of Scotland and Wales, without even informing them or seeking their opinion.

This is an example of the difference between "consult" and "inform", or the difference between asking permission before the fact and apologising after for what you've done.

Devolution - "Delegation of authority or duties to a subordinate or substitute." - is implemented through block grants or budgets. But it seems that the Westminster govt can "repurpose" ie take with the left hand what it has given with the right.

I'd imagine that the warmongering - the West provoking Russia into war in Ukraine - comes out of Westminster exclusively, and Scotland and Wales are not much interested in fighting foreign wars, so this money - purposed originally for levelling up for "development" of local economies and social infrastructure - if it had to go to Ukraine, could have gone to Ukraine for humanitarian purposes, but is unlikely to get support from the Scottish and Welsh peoples if it's for military purposes. 

What is the sentiment in Scotland and Wales towards this war? What do the polls tell us?

Overall it looks like an outrageous abuse of devolution and a disrespect of the wishes of the local representatives of the people, a high-handed way to treat these two countries as "client states".

The devolved governments are not in much of a position to fight back as they both take more from the UK deal than they put in... but then again the whole of the UK is in hock to its foreign lenders and the printing presses, as we saw yesterday the 22Q1 current account deficit is an astonishing 8.3% of GDP, the highest it's ever been and for comparison purposes India's in 2021 was 1.5%.

Isn't really the best idea to include the southeast itself in "levelling up"?! The UK has plenty of problems but as to economic, it comes down to poor productivity and lack of competitivity....another devaluation anyone?

I wouldn't have thought it was worth it politically, for the sake of 100 million quid, to alienate Scotland and Wales, with already a breakup of the kingdom on the cards. Boris have rolled the worn out, tired old, counterfeiting printing presses again.