Caroline Gardner Auditor General for Scotland A brief history of devolution so far Scottish Parliament established in 1999 Scotland Act 1998 New financial powers Scotland Act 2012 Scottish rate of income tax ID: 535933
Download Presentation The PPT/PDF document "Scotland’s new financial powers: the o..." is the property of its rightful owner. Permission is granted to download and print the materials on this web site for personal, non-commercial use only, and to display it on your personal computer provided you do not modify the materials and that you retain all copyright notices contained in the materials. By downloading content from our website, you accept the terms of this agreement.
Slide1
Scotland’s new financial powers: the opportunities and risks
Caroline GardnerAuditor General for ScotlandSlide2
A brief history of devolution so far…
Scottish Parliament established in 1999 (Scotland Act 1998)
New
financial powers (Scotland Act 2012)
Scottish rate of income taxDevolved taxes (Land & Buildings Transaction Tax and Landfill Tax)Borrowing powers Independence referendum – the Vow – the Smith Commission 2014Further financial devolution (Scotland Act 2016)
2Slide3
Scotland Act 2016 – new financial powers
3
Income tax
From April 2017
Estimated revenues of £11.2 billion The power to set income tax rates and bands on earned income and to retain the tax collected from Scottish taxpayers Social security
Date T
BC
Estimated spending
of £2.7 billion
Responsibility
for some social security powers
Value Added Tax (VAT) From April 2019Estimated revenues of £5.4 billion Assigning a share of the VAT collected in Scotland to the Scottish Government's budgetDevolved taxesFrom April 2018Devolution of two further taxes: Air Passenger Duty (estimated revenues of £309 million) Aggregates Levy (estimated revenues of £54 million)Borrowing and reserveFrom April 2017Increased borrowing and reserve powersRevenue (£1.75 billion) and capital investment (£3.0 billion)Scottish Reserve (£700 million)Slide4
Taxation as share of devolved expenditure
4
Source: Scottish Parliament Information Centre
Financial Scrutiny UnitSlide5
5
Financial devolution: opportunity and risk Risks
Fiscal risk – volatility of taxes and spending
Intergovernmental relationships
Direct link between economic performance and public finances OpportunitiesMore flexibility on policy choices and associated tax and spend
Development of more strategic management of public financesSlide6
6
Parliamentary scrutiny and audit
Priorities
Whole of
Government Accounts
Greater transparency
Budget process
Fiscal framework
Fiscal sustainability
Our reports