Book Description

The Scottish Affairs Committee report on the Scotland Bill, states that the Bill achieves its stated purpose of increasing the financial accountability of the Scottish Parliament, but identifies a number of areas for improvement. The committee stresses the need for transparency and calls for the figures used to calculate all parts of the financial arrangements of the Scotland Bill to be opened up for scrutiny, in order to enhance decision-making. It says it intends to keep this area under review and requests regular reports on progress. At the heart of the Government's proposals are the provisions to give the Scottish Parliament the powers to raise a single rate of Scottish income tax, and to reduce the block grant accordingly. The committee says it is a major omission that neither the Bill nor the Command Paper provides an adequate explanation as to how the balance between income tax and the reduction to the block grant will be calculated. The Government should have put forward a considered proposal on the principles and methodology of this system, and detailed consideration should be given, as a matter of urgency, to how the reduction in the block grant will be calculated. Provisions in the Bill for both capital and revenue borrowing powers are to be welcomed, but the committee notes the concern of witnesses that the limits are too low. It recommends that the Government, in close consultation with the Scottish Parliament and with the committee, reconsiders the proposed limits, and it suggests as a starting point for discussion the amount of £1bn, with a limit of £500 million in any one year.The report also highlights the committee's intention to continue its scrutiny role as the proposals are implemented. In particular, it intends to closely monitor the roles of the UK Government, HMRC and the Office for Budget Responsibility.