Chamber and committees

The Scottish Government believes that independence would deliver the best deal for Scotland – providing control over all public spending decisions, as well as the suite of fiscal powers necessary to unlock Scotland’s full economic potential.

However, until such a time as the people of Scotland can choose a different constitutional arrangement, moving to full fiscal autonomy for the Scottish Government would create a fairer system that would protect public services and allow investment in our economy.

The Scottish Government outlined its views on full fiscal autonomy in its evidence to the 2014 Smith Commission, when Scotland’s devolved fiscal arrangements were last subject to substantial review.

Full fiscal autonomy would mean that all onshore and offshore taxes would be designed and set in Scotland, including tax rates, allowances, thresholds and the tax bases. For any reserved taxes, revenues would be assigned to the Scottish budget.

At the same time, the Scottish Parliament would also take responsibility for key elements of domestic expenditure, including currently reserved areas of welfare. The Scottish Government’s position reflects significant issues with current devolved fiscal arrangements, and particularly with the approach taken by the previous UK Government.

Even where the new UK Government is not willing to pursue full fiscal autonomy for Scotland, it has the opportunity to agree a set of substantial improvements to devolved fiscal arrangements - including through agreement to fiscal flexibilities that are commensurate to the level of risk the Scottish Government currently manages within its responsibilities. Such powers are essential to manage and smooth the funding volatility and uncertainty which affects our current finance arrangements.