Saturday, 18 July 2020

Fact Checking a Fact Check

The National today published a 1,000 article rather hilariously labelled as a "Fact Check" which amounted to little more than a personal attack against me. The entire piece is predicated on their view that issuing a clarification is "being forced to eat your words" - it's a sorry state of affairs when a blogger has more journalistic integrity than a publication claiming to be a national newspaper. Despite taking all those words merely to demonstrate their own failure to grasp the basic facts of the matter, they boldly conclude: "Chokkablog gets it spectacularly wrong".

Well allow me to retort.

Context

I wrote some tweets and a blog complaining about Kate Forbes' attempts to seek grievance by suggesting that Rishi Sunak's "Plan for Jobs" £30bn pandemic support was worth only £21m to Scotland.

My main complaint was that she was mithering about funds the Scottish Government was receiving, cynically expecting independence supporters to read that as being all the support that Scotland was receiving. You might be thinking only a knuckle-dragging grievance-junky would make such a mistake. Ladies and gentlemen, I present to you the National's front page splash yesterday:


For the avoidance of any doubt: the claim that "Scotland only gets £21m from '£30bn'" is absolutely and unequivocally false. Rememember: this is the paper which is claiming to be publishing a "Fact Check" on this topic!

Here is what the IFS actually said: "Of course, Scotland as a nation will receive much more – UK-wide measures like the Job Retention Bonus, Kickstart Scheme and VAT cut could amount to around £1 billion of genuinely new money for Scottish businesses, jobseekers and consumers. And the Scottish Government itself will receive over £700 million as a result of other funding confirmed in the Summer Economic Update"

I also questioned the veracity of the £21m number itself, even as the figure the Scottish Government would get "of the £30bn". As is always the way with my blog, I laid out the audit-trail of information I was able to find, explained my reasoning and was clear about what I could and could not show.

I concluded: "To be clear: I don't know what the Barnett Consequentials are on the £30bn figure, but I do know the correct denominator for the calculation is certainly not £30bn* and I would be amazed if the correct numerator was as low as £21m"

* as that includes funds spent directly in Scotland, not via the Scottish Government

I was completely clear about the basis of my judgement and - as it happens - I was right.

Again looking at what the IFS actually said: "the Scottish Government will get far more than £21 million. Because stamp duty is devolved to Scotland it will get much more than that [..] Exactly how much is not yet clear [..] but initial estimates published by the OBR this week suggest it could amount to around £120 million spread over this year and next"

So why did I apologise?

I apologised because in my blog I referenced a statement made by the IFS as support for my conclusions and - emboldended by the IFS spokeperson being quoted as saying the £21m was "not true" - I said "far fewer people will take the time to understand the complicated truth than accept the simple lie".

When the IFS issued a subsequent statement (the one I quote above) highlighting that they had - like me - not realised how much of the £30bn was recycled money, I felt it would be wrong for me not to update my blog to reflect that. I also felt, in the light of the revised IFS statement, that I had been overly harsh in suggesting that Kate Forbes' claim was a "lie" and that I should apologise for that - so I did. I also pinned the Tweet making that apology to my Twitter profile, to ensure it was widely seen.

The National "Fact Check"

They offer their readers this "Doorstep answer": "Kevin Hague was forced to eat his words when the independent Institute for Fiscal Studies did the sums again and agreed with the Cabinet Secretary. Hague was forced to apologise."

I wasn't forced to do anything - who on earth do they think did this forcing? In fact what happened is that I had the integrity to ensure that my post was updated to reflect the IFS's own updated statement and I hope the good grace to recognise that I had been overly harsh in my original wording.

I'll skip the National's ad hominem attacks on me and the organisation I chair and try and focus on the odd moments where the National attempts to deal with what I actually wrote. They say: "he accepts at face value the Chancellor’s claim that the Plan for Jobs means £30bn of new money, though there are references in the initial Treasury paper to existing cash pledges being “brought forward”.

It is patently untrue that I accepted £30bn at face value as new money. They're claiming this is a "Fact Check" remember and my exact words were: "Now some of these are described as "accelerating investment" and some are "previously announced" - so it's possible that the Barnett Consequentials relating to them have already been included in previous figures announced". 

The National go on to say: "Suspiciously, despite endless laudatory quotes from Sunak’s Plan for Jobs .."

Far from being endless, there isn't a single "laudatory quote" in my blog (remember, they think this is a "Fact Check") - I merely detail what's in the Plan to explicitly separate out what would be UK-wide and so have no impact on the Scottish Government's budget.

They then rather neatly highlight my transparent honesty (don't forget they claim I'm doing this "suspiciously"): "... Hague actually avoids giving exact numbers for what he considers to be the correct Barnett consequentials. In fact, he admits: “I don’t know what the Barnett consequentials are on the £30bn figure”. How then can he criticise Kate Forbes?"

The problem here is that the author of the National's "Fact Check" clearly has no understanding of how an analytical audit trail works, or why admitting that you don't have the information to be able to calculate or recreate a specific figure is not "suspicious", it's transparent and honest. It is precisely because I am being very careful to avoid misleading readers of my blog that I feel I can criticise Kate Forbes.

The National continue: "Instead, Hague quotes an analysis written on the day of the Chancellor’s statement, by Peter Phillips of the independent Institute for Fiscal Studies (IFS). Here Philips rejects the Cabinet Secretary’s figure of £21m in Barnett consequentials as simply “not true”. Unfortunately for Hague, a week later Phillips completely reversed his judgement, explicitly exonerating Forbes."

It's not "instead" and it was an interview quote not an "an analyis", but yes I referenced an IFS quote in support of my conclusion - which is why when they issued a clarification I updated my blog.  It's also obvious to anybody who reads what the IFS actually wrote that, while mainly complaining about Sunak's misleading presentation of the figures, they were not "explicitly exonerating Forbes". They were recognising that the £21m was a valid number under a specific definition (Barnett Consequentials of newly announced spend) but also that it is not even all of the money the Scottish Government "get" as a result of newly announced spend ("Because stamp duty is devolved to Scotland it will get much more than that").

The National's Conclusion is actually - unintentionally I'm sure - rather flattering: "KEVIN Hague was quick to reword his original blog (yesterday). He also apologised for essentially calling her a liar. But in his reworked blog post, there remains the implication that Forbes was manufacturing grievance for political ends. Buried deep in the small print of the revised blog, Hague makes a grudging admission regarding his earlier erroneous criticisms of the Cabinet Secretary’s integrity: “... it’s only fair to highlight that her figure is more justifiable than my original wording implies.”

"Buried deep in the small print" amuses me, given there is no small print, it's the conclusion of the blog and I screen-capped, tweeted and pinned the apology - but whatever. Apart from that nonsense I'm pretty happy with the rest of their summary to be honest. Only a single-issue propaganda sheet with no journalisic integrity or interest in factual accuracy would see the act of clarifying and apologising as a bad thing - and my suggestion that she was manufacturing grievance for political ends is vindicated by the National's own headline on Friday, so I guess I should thank them for that!

Now, while it's always super fun to start the weekend defending yourself against a hit-piece in a national newspaper, I really do have better things to be doing with my time.

Thursday, 9 July 2020

Kate Forbes' Grievance, Dissected

At the time of writing, in the 24 hours since being posted this tweet from Scottish Finance Secretary Kate Forbes has received around 4 thousand retweets and likes Those are some big social media numbers for a bold claim - so let us dissect this grievance:

"Of the c.£30 billion announced by the Chancellor today to support the economy"

It's clear she's referring to this announcement by Chancellor Rishi Sunak and a quick browse finds us the (up to) £30bn

"the Scottish Government will receive..."

A cynic might see signs of sophistry here: by referring to what "the Scottish Government will receive" is she hoping casual readers will read that as being all the economic support Scotland will receive? Surely not.

On the off-chance that anybody might have fallen for this rather clumsy rhetorical sleight of hand: for those parts of the scheme that are UK or GB-wide, Scotland will receive money based directly on need (or take-up), it just won't come via the conduit of the Scottish Government.

So by limiting herself to funds "the Scottish Government will receive" she's able to ignore our needs-based share of the:
  • £9.4bn Job Retention Bonus
  • £2.1bn Kickstart Scheme 
  • £1.2bn of various support programmes for those seeking work
  • £1.2bn of decarbonisation initiatives
  • £0.5bn "Eat Out to Help Out" scheme
  • £0.3bn of UK-wide investment in "World Class Laboratories"
The above totals £14.7bn, of which Scotland will of course receive its fair share based on need and/or take-up. If we assume for illustrative purposes that equates to our 8.2% population share, that's £1,200m she's decided to disregard.

But the above are just the UK and GB-wide spending elements of the support package announced - the £30bn also includes £4.1bn of VAT reduction for hospitality, accomodation and attractions which Scotland will benefit from based on our share of consumption in those sectors (the Scottish tourism industry being of particular significance here). Again if we assume this translates into our 8.2% population share (my guess is it will be higher), that's another c.£330m of economic support she's disregarding.

But it doesn't stop there: the £30bn headline number also includes a £3.8bn cut to Stamp Duty Land Tax (SDLT) in England and NI. This is a tax fully devolved to Scotland (as LBTT) and there has been nothing - other than political will and/or courage - to prevent the Scottish government taking similar action. [I'll be honest: how - if at all - this cut would affect the Scottish Block Grant Adjustment is not something I've taken the time to get my head around].


**** Update 17/07/2020 ****
There will indeed be a Scottish budget increase as a direct result of this SDLT cut - according to the IFS: "Exactly how much is not yet clear – it will depend on updated forecasts and ultimately outturns for stamp duty revenues in England and Northern Ireland. But initial estimates published by the OBR this week suggest it could amount to around £120 million spread over this year and next."


So if we add together the elements above, we have identified £22.6bn of the £30bn which is not relevant to the figure that the Scottish Government should receive.


"... only £21m - less than 0.1%"

Where does the £21m come from? The implication is that this is the Barnett consequentials on the £30bn announced, but that's a hard number to calculate (and as we've seen, £30bn is the wrong denominator to use).

We've already shown that £22.6bn of the package announced wouldn't be relevant for the purposes of calculating Barnett Consequentials anyway (because those are sums being spent UK or GB-wide and/or relate to tax cuts, not spending). 

But that still leaves us with c.£7bn of spending committed to England on which we might expect Barnett consequentials to flow to the Scottish Government.

That £7bn is made up of;
  • £2.0bn of Green Homes Grant (an English initiative)
  • £1.5bn of "accelerating investment" in England's NHS
  • £0.8bn of "accelerating investment" in England's Schools
  • £0.6bn of other "accelerating investment" in English infrastructure projects
  • £0.9bn of English home building / housing fund increase
  • £0.3bn of England-only job support
  • c.£1.0bn of implied other English infrastructure investment (mainly the Affordable Homes Programme)
Now some of these are described as "accelerating investment" and some are "previously announced" - so it's possible that the Barnett Consequentials relating to them have already been included in previous figures announced.

But Kate Forbes is talking about the amount that will flow to the Scottish Government "of the £30bn announced" and is using the £30bn as the denominator for her grievance-headline grabbing "less than 0.1%" claim - so it would simply be incorrect to exclude any of the Barnett Consequentials from the above in her calculation, whenever they may have been previously announced or discussed.

To be clear: I don't know what the Barnett Consequentials are on the £30bn figure, but I do know the correct denominator for the calculation is certainly not £30bn and I would be amazed if the correct numerator was as low as £21m (the Green Homes Scheme alone would surely generate £160m of Barnett Consequentials?)

In fact as I am writing this post I see "Leading economist: £21m claim by SNP finance chief not true" in which David Phillips of the IFS reaches the same conclusion.


**** Update 17/07/2020 ****
David Phillips has subsequently posted this "Up to £10 billion of the Chancellor's 'Plan for Jobs' will be funded by underspends on previously planned projects" making this very important correction:

"But the Scottish Government won’t, as I initially presumed, get extra funding as a result of the Green Homes Grant or the full £40 million it would if all of the money for traineeships and so on were new. Instead, apart from the stamp duty money, it will receive £21 million – the figure quoted by the Scottish Finance Minister – as a result of the combination of the ‘Plan for Jobs’ and the reductions in investment spending elsewhere that the Treasury is now expecting."

Revisiting my own text in the light of this, a couple of observations and corrections:

I said above "some of these are described as "accelerating investment" and some are "previously announced" - so it's possible that the Barnett Consequentials relating to them have already been included in previous figures announced" - Whilst I was right, there's no doubt that when writing I was assuming that some rather than effectively all of these figures had already been announced. So mea culpa, I fell into the same trap as the IFS

I did say "To be clear: I don't know what the Barnett Consequentials are on the £30bn figure" - and to be fair I still don't. All we know now is that the Barnett Consequentials on the proportion of the £7bn [i.e. that part of the £30bn that is not being spent UK or GB-wide] which is genuinely new money is £21m (and that there will be an additional c.£120m block grant adjustment over 2 years related to the SDLT cut).

I said above "I would be amazed if the correct numerator was as low as £21m ". Given at this stage we are past the "suggesting that what matters here is what the Scottish Government gets as opposed to what the people of Scotland get"point, we are now debating technicalities. So it's fair to point out that a/ "of the £30bn" the consequentials are indeed greater than £21m - when quoting the £21m we should be saying "of what's new in the £30bn" b/ the £21m excludes the block grant adjustment impact of the SDLT cut, worth c.£120m over 2 years

But I've thought about this and, given the incremental Barnett Consequentials from what was annouced are only £21m, I don't think it's unreasonable that Kate Forbes chose that as her headline "the Scot Gov gets" number. In an ideal world she should have said "the only new money the Scottish Government will receive is ..." and even then should have included c£120m for the likely SDLT block grant adjustment ... but it would be inconsistent of me to hold her to higher standards than HM Treasury, and it's their attempt to pass recycled money off as new that's caused the confusion and provided her with cover.

None of this changes the most important point here, the point Kate Forbes was hoping to distract from (again quoting the IFS):

Of course, Scotland as a nation will receive much more – UK-wide measures like the Job Retention Bonus, Kickstart Scheme and VAT cut could amount to around £1 billion of genuinely new money for Scottish businesses, jobseekers and consumers. And the Scottish Government itself will receive over £700 million as a result of other funding confirmed in the Summer Economic Update – mainly as a result of extra spending on public services in England such as the NHS.


There is no doubt in my mind that Forbe's tweet was intended to stoke grievance by implying that Scotland is only seeing 0.1% of the £30bn. That in itself is at best pretty disappointing, at worst downright outrageous.

But even if we grant her the semantic benefit of the doubt - if we assume she was expecting her followers to interpret this as an issue of control of spending rather than the absolute amount of support the Scottish economy is receiving - the figures she quotes make no sense. 

The Barnett Consequentials resulting from the figures annouced yesterday will clearly be greater than she claims*, and she divides this wrong figure by the wrong figure anyway to get to her 0.1% claim. This is the sort of behaviour that gives people like me headaches.


**** Update 17/07/2020 ****
* per the update above: the Barnett Consequential from that part which is new money of the figures annouced will not be greater than she claims. The italicised part above is important, but it's only fair to highlight that her figure is more justifiable than my original wording implies


It took Kate Forbes a couple of minutes to fire out that tweet, and it will have done its job for her amongst the SNP's grievance-hungry supporters. The moment I saw the tweet I, like so many others, knew instinctively it was nonsense. But it has taken me most of the day to robustly show why - and far fewer people will take the time to understand the complicated truth than accept the simple lie*. Such is the depressing reality of modern politics, I guess.


**** Update 17/07/2020 ****
* I still have issues with the tweet - the implication that £21m is all Scotland is getting, the fact she uses £30bn as the denominator ("of the £30bn") when most of the £30bn is UK-wide spend anyway and the fact that she ignore the block grant adjustment impact of the SDLT cut - but knowing what we now know about the way the treasury recycled already committed spending to make it look like new spending, I think I was wrong to label the tweet a "simple lie" and offer my apologies to Kate Forbes for doing so 


***

As an addendum: I see Andrew Wilson - Chair of the SNP's Sustainable Growth Commission (a commission on which Kate Forbes sat) - has offered his hot take:
Apparently in the world of the SNP fan-club, she is making a "self evidently truthful point" .. and to highlight the reality of the support the Scottish economy is receiving from the UK government is to somehow fail to "back devolution".

I despair.

***

For those who care about the workings, the below is the spreadsheet I used to turn the text in the "Plan for Jobs" report into something I could interpret