Magazine article Public Finance

New Tax Powers 'Could Be Model for Other Nations'

Magazine article Public Finance

New Tax Powers 'Could Be Model for Other Nations'

Article excerpt

Plans to boost the financial powers of the Scottish Parliament could serve as a model for other devolved UK nations and possibly England as well, according to an international expert in fiscal federalism.

Professor Robin Boadway, of the department of economics at Queen's University, Canada, has told MSPs that his overall impression of the Scotland Bill - which gives Holyrood limited control over income tax and a new power to borrow - is 'positive'.

In a written submission to the committee set up to scrutinise the Bill, Boadway says the proposed financing structures are a major step forward in the devolution of fiscal responsibility and accountability to the Scottish Government.

Under the Bill, income tax in Scotland will be cut by 1Op in the pound, with a consequent reduction in the Westminster-determined block grant. The Scottish Parliament will have the power to increase the tax to make up the difference.

Boadway describes this as an ideal way to devolve some revenue-raising responsibility to Scotland, adding that the mechanism 'could suitably be mimicked by other devolved governments in Wales, Northern Ireland and potentially even England'.

However, the professor is concerned about the requirement that the Scottish income tax rate should apply to all bands. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.