Finance

Scotland’s finance secretary asks chancellor for assurances over tax plans

Published

4 months ago

November 8, 2025

Scotland’s finance secretary asks chancellor for assurances over tax plans

PA Media Shona Robison in the Holyrood chamber with a neutral expression on her face. She is holding a black leather folder with paper protruding from the top. She wears a navy top and has her blonde hair pinned up. — Shona Robison’s “tests” for Rachel Reeves include increasing consequential funding for Scotland

Scotland’s finance secretary has asked for a meeting and assurances from the chancellor over speculation she will raise income tax in her Budget.

Such a move, which Rachel Reeves refused to rule out last week, would lead to an automatic deduction from Scotland’s funding from the Treasury.

Shona Robison said Labour should ditch “outdated” fiscal rules which include making sure day-to-day spending is funded by tax revenues.

The Treasury said it would not comment on speculation but claimed its previous “record settlement” for Scotland meant it receives 20% more funding per head of population than the rest of the UK.

In an unusual pre-Budget speech in Downing Street last week, Reeves said she would make “necessary choices” in her tax and spending plans later this month after the world had “thrown more challenges our way”.

She did not rule out a U-turn on Labour’s general election manifesto pledge not to raise income tax, VAT or National Insurance, leading to speculation that a tax rise is on the way.

Any increase in income tax by the UK government could see a fall in the block grant Scotland receives from Westminster as a result of a funding agreement called the Block Grant Adjustment.

The Fraser of Allander Institute has estimated a 2p rise in the basic rate of tax elsewhere in the UK could cut Scotland’s budget by up £1bn, unless the Scottish government matches the increase with its own tax rise.

Robison said the chancellor’s speech had “piled uncertainty on uncertainty” and that she had requested an “urgent meeting” where she would set out three tests.

These are:

The chancellor “ditch her outdated, restricted fiscal rules” and faces up to a “new reality”.
All money raised from tax increases is invested in public services, meaning the block grant also increases as a result
Confirmation that Scotland will not see a cut in funding

She said: “They came to office promising an end to austerity, so to impose it on Scotland would be a political betrayal from which Labour would never recover.”

Rachel Reeves’ Downing Street speech led to speculation she plans to raise income tax

Getty Images Chancellor Rachel Reeves stands in front of a union jack wearing a plum blazer and white V-neck top. — Rachel Reeves’ Downing Street speech led to speculation she plans to raise income tax

Income tax in Scotland

Ahead of the last general election First Minister John Swinney urged the next UK government to replicate Scotland’s devolved taxation system where higher earners pay more in tax.

People living in Scotland earning below about £30,300 pay slightly less income tax than they would elsewhere in the UK, with a maximum saving of about £28.

Above that threshold they pay increasingly more as earnings increase. Someone on £50,000 in Scotland pays £1,528 more than they would in the rest of the UK. That rises to £5,207 for someone on £125,000.

Proposed income tax bands in Scotland -
Starter rate £12,571 - £15,397 - 19%
Basic rate £15,398 - £27,491 - 20%
Intermediate rate £27,492 - £43,662 - 21%
Higher rate £43,663 - £75,000 - 42%
Advanced rate £75,001 - £125,140 - 45%
Top rate Over £125,140 -48%

Swinney recently said he had no plans to make any further changes to taxation in Scotland ahead of next May’s Holyrood election.

However, following the chancellor’s speech last week he has now declined to rule this out.

What is the Treasury saying?

The Treasury said it could not comment on the chancellor’s plans ahead of her Budget, but it said she had outlined the global and long term economic challenges that would influence her decisions.

A spokesperson said: “Our record funding settlement for Scotland will mean over 20% more funding per head than the rest of the UK.

“We have also confirmed £8.3bn in funding for GB Energy-Nuclear and GB Energy in Aberdeen, up to £750m for a new supercomputer at Edinburgh University, and are investing £452m over four years for City and Growth Deals across Scotland.

“This investment is all possible because our fiscal rules are non-negotiable, they are the basis of the stability which underpins growth.”

Why would a UK tax hike cut Scotland’s budget?

A change to UK income tax would apply directly to residents in England, Wales and Northern Ireland – but it could also have an impact on Scottish taxpayers.

When the devolved government in Scotland was given more tax raising powers nearly a decade ago, an agreement called the Fiscal Framework was agreed setting out how the new system would work.

Part of that was something called the Block Grant Adjustment (BGA) which meant the funding Holyrood receives from Westminster was reduced to take into the account money the Scottish government was now able to raise directly.

The BGA was intended to stop either government being better or worse off due to devolution.

It means the UK government is able to deduct funds from the block grant that it estimates it would have received if tax-raising powers were not devolved.

If the chancellor raises income tax, the BGA will also change.

Scotland will then have to generate more tax revenue or cut public spending in order to avoid a budget shortfall.

The Scottish Budget will be announced on 13 January.

Finance

Cornell Administrator Warren Petrofsky Named FAS Finance Dean | News | The Harvard Crimson

Published

5 hours ago

February 28, 2026

Press Room

Cornell Administrator Warren Petrofsky Named FAS Finance Dean | News | The Harvard Crimson

Cornell University administrator Warren Petrofsky will serve as the Faculty of Arts and Sciences’ new dean of administration and finance, charged with spearheading efforts to shore up the school’s finances as it faces a hefty budget deficit.

Petrofsky’s appointment, announced in a Friday email from FAS Dean Hopi E. Hoekstra to FAS affiliates, will begin April 20 — nearly a year after former FAS dean of administration and finance Scott A. Jordan stepped down. Petrofsky will replace interim dean Mary Ann Bradley, who helped shape the early stages of FAS cost-cutting initiatives.

Petrofsky currently serves as associate dean of administration at Cornell University’s College of Arts and Sciences.

As dean, he oversaw a budget cut of nearly $11 million to the institution’s College of Arts and Sciences after the federal government slashed at least $250 million in stop-work orders and frozen grants, according to the Cornell Daily Sun.

He also serves on a work group established in November 2025 to streamline the school’s administrative systems.

Earlier, at the University of Pennsylvania, Petrofsky managed capital initiatives and organizational redesigns in a number of administrative roles.

Petrofsky is poised to lead similar efforts at the FAS, which relaunched its Resources Committee in spring 2025 and created a committee to consolidate staff positions amid massive federal funding cuts.

As part of its planning process, the committee has quietly brought on external help. Over several months, consultants from McKinsey & Company have been interviewing dozens of administrators and staff across the FAS.

Petrofsky will also likely have a hand in other cost-cutting measures across the FAS, which is facing a $365 million budget deficit. The school has already announced it will keep spending flat for the 2026 fiscal year, and it has dramatically reduced Ph.D. admissions.

In her email, Hoekstra praised Petrofsky’s performance across his career.

“Warren has emphasized transparency, clarity in communication, and investment in staff development,” she wrote. “He approaches change with steadiness and purpose, and with deep respect for the mission that unites our faculty, researchers, staff, and students. I am confident that he will be a strong partner to me and to our community.”

—Staff writer Amann S. Mahajan can be reached at [email protected] and on Signal at amannsm.38. Follow her on X @amannmahajan.

Finance

Where in California are people feeling the most financial distress?

Published

17 hours ago

February 27, 2026

Press Room

Where in California are people feeling the most financial distress?

Inland California’s relative affordability cannot always relieve financial stress.

My spreadsheet reviewed a WalletHub ranking of financial distress for the residents of 100 U.S. cities, including 17 in California. The analysis compared local credit scores, late bill payments, bankruptcy filings and online searches for debt or loans to quantify where individuals had the largest money challenges.

When California cities were divided into three geographic regions – Southern California, the Bay Area, and anything inland – the most challenges were often found far from the coast.

The average national ranking of the six inland cities was 39th worst for distress, the most troubled grade among the state’s slices.

Bakersfield received the inland region’s worst score, ranking No. 24 highest nationally for financial distress. That was followed by Sacramento (30th), San Bernardino (39th), Stockton (43rd), Fresno (45th), and Riverside (52nd).

Southern California’s seven cities overall fared better, with an average national ranking of 56th largest financial problems.

However, Los Angeles had the state’s ugliest grade, ranking fifth-worst nationally for monetary distress. Then came San Diego at 22nd-worst, then Long Beach (48th), Irvine (70th), Anaheim (71st), Santa Ana (85th), and Chula Vista (89th).

Monetary challenges were limited in the Bay Area. Its four cities average rank was 69th worst nationally.

San Jose had the region’s most distressed finances, with a No. 50 worst ranking. That was followed by Oakland (69th), San Francisco (72nd), and Fremont (83rd).

The results remind us that inland California’s affordability – it’s home to the state’s cheapest housing, for example – doesn’t fully compensate for wages that typically decline the farther one works from the Pacific Ocean.

A peek inside the scorecard’s grades shows where trouble exists within California.

Credit scores were the lowest inland, with little difference elsewhere. Late payments were also more common inland. Tardy bills were most difficult to find in Northern California.

Bankruptcy problems also were bubbling inland, but grew the slowest in Southern California. And worrisome online searches were more frequent inland, while varying only slightly closer to the Pacific.

Note: Across the state’s 17 cities in the study, the No. 53 average rank is a middle-of-the-pack grade on the 100-city national scale for monetary woes.

Jonathan Lansner is the business columnist for the Southern California News Group. He can be reached at jlansner@scng.com

Finance

Why Chime Financial Stock Surged Nearly 14% Higher Today | The Motley Fool

Published

1 day ago

February 26, 2026

Press Room

Why Chime Financial Stock Surged Nearly 14% Higher Today | The Motley Fool

The up-and-coming fintech scored a pair of fourth-quarter beats.

Diversified fintech Chime Financial (CHYM +12.88%) was playing a satisfying tune to investors on Thursday. The company’s stock flew almost 14% higher that trading session, thanks mostly to a fourth quarter that featured notably higher-than-expected revenue guidance.

Sweet music

Chime published its fourth-quarter and full-year 2025 results just after market close on Wednesday. For the former period, the company’s revenue was $596 million, bettering the same quarter of 2024 by 25%. The company’s strongest revenue stream, payments, rose 17% to $396 million. Its take from platform-related activity rose more precipitously, advancing 47% to $200 million.

Image source: Getty Images.

Meanwhile, Chime’s net loss under generally accepted accounting principles (GAAP) more than doubled. It was $45 million, or $0.12 per share, compared with a fourth-quarter 2024 deficit of $19.6 million.

On average, analysts tracking the stock were modeling revenue below $578 million and a deeper bottom-line loss of $0.20 per share.

In its earnings release, Chime pointed to the take-up of its Chime Card as a particular catalyst for growth. Regarding the product, the company said, “Among new member cohorts, over half are adopting Chime Card, and those members are putting over 70% of their Chime spend on the product, which earns materially higher take rates compared to debit.”

Today’s Change

(12.88%) $2.72

Current Price

$23.83

Key Data Points

Market Cap

$7.9B

Day’s Range

$22.30 – $24.63

52wk Range

$16.17 – $44.94

Volume

562K

Avg Vol

3.3M

Gross Margin

86.34%

Double-digit growth expected

Chime management proffered revenue and non-GAAP (adjusted) earnings before interest, taxes, depreciation, and amortization (EBITDA) guidance for full-year 2026. The company expects to post a top line of $627 million to $637 million, which would represent at least 21% growth over the 2024 result. Adjusted EBITDA should be $380 million to $400 million. No net income forecasts were provided in the earnings release.

It isn’t easy to find a niche in the financial industry, which is crowded with companies offering every imaginable type of service to clients. Yet Chime seems to be achieving that, as the Chime Card is clearly a hit among the company’s target demographic of clientele underserved by mainstream banks. This growth stock is definitely worth considering as a buy.