Member Article

Parliament addresses Scotland's fiscal future

Scotland’s financial future will be investigated by the All-Party Parliamentary Taxation Group (APPTG), during the two-year run up to the Scottish independence referendum.

Following recent proposals for the devolution of tax powers in Wales as a result of the Silk Commission, Parliament announced on Saturday that its research project will examine the all outcomes of the referendum for Scotland’s fiscal future.

APPTG said it is “critically important” to look closely at the shape of a post-Calman Commission and post-Scotland Act 2012 Scottish tax system.

Due in May 2013, the report will be broken down in a series of papers which will look into the multiple outcomes of the independence debate to add to work currently being carried out on devolution in the Celtic regions.

APPTG said the project would be politically independent, and would take on a cross-party assessment of how Holyrood and Westminster can cooperate financially.

Academics will be consulted on the project, and Parliament said it will welcome contributions from a wide range of stakeholders in the Scottish and UK governments, as well as members of devolved governments, civil servants and industry professionals.

The series of reports published throughout 2013 and 2014 will address costs and opportunities made available be increased Scottish financial control, and will examine potential restrictions the country could face, while research will also focus on the potential transition from union with the UK, to Scottish fiscal autonomy.

Ian Liddell-Grainger, MP and Chair of APPTG, commented: “It is evident that the future path Scotland takes will have a tremendous impact on the lives of people on both sides of the border.

“We hope that the Group’s research will provoke wider discussion of those issues associated with independence which have not yet been given the attention they need.”

APPTG’s project will concentrate specifically on how fiscal control will be passed over to Holyrood from Westminster, and will consider the possibility of a Scottish administration with more power over tax reforms.

The research will ultimately aim to offer pragmatic policy solutions for increased Scottish power that hope to be useful for the country now, and in the future.

Marius Ostrowski, Head of Research at the APPTG, said: “One of the key problems with the debate about Scotland’s future is that it is characterised by a high degree of uncertainty.

“The governments in Westminster and Holyrood, and campaigners on both sides of the independence issue, need to be clear about what the precise effects of a yes or a no vote will be.

“Only then can they give individual voters, communities, and businesses the guidance they need to make an informed choice in November 2014.”

This was posted in Bdaily's Members' News section by Miranda Dobson .