During the Committee's Budget and pre-Budget scrutiny (reports below), the Committee considered the methodology for VAT assignment for Scotland and noted that basing VAT assignments for Scotland on estimated figures could introduce further volatility into Scotland's public finances.
The Committee has asked the Scottish Government to keep the Committee updated on the development of the methodology used for assigning VAT to Scotland in advance of it being finalised by the Joint Exchequer Committee in spring 2019.
Given the impact that VAT assignment will have on the Scottish Budget, the Commitee explored the issue further with stakeholders in a roundtable discussion on Wednesday 13 March 2019. Committee papers produced in support of the discussion are listed below:
VAT roundtable 13 March 2019 (575KB, pdf)
Following this session, the Committee agreed to write to the Scottish Government on the issues raised during the session:
Letter from Convener to Derek Mackay, Cabinet Secretary for Finance, Economy and Fair Work (93KB, pdf).
Response from Derek Mackay, Cabinet Secretary for Finance, Economy and Fair Work (219KB, pdf).
The Committee received the following correspondence from Derek Mackay, Cabinet Secretary for Finance, Economy and Fair Work, to the Chief Secretary to the Treasury on VAT assignment in Scotland (15 May 2019):
Letter from Derek Mackay to Chief Secretary to the Treasury (551KB, pdf)
The Committee responded to the Cabinet Secretary's letter on 16 May 2019:
Letter from Convener to Derek Mackay, Cabinet Secretary for Finance, Economy and Fair Work (120KB, pdf)
For infomation, the Committee pre-Budget 2019-20 and Budget 2019-20 scrutiny reports are available below:
Pre-Budget 2019-20 report (pdf, 1438KB)
Budget 2019-20 report (pdf, 2105KB)