The country faces acute economic challenges in the years ahead. The SNP should use its upcoming conference to discuss solutionsby Graeme Roy / October 6, 2017 / Leave a comment
Until recently, the Scottish Parliament’s budget was almost entirely determined by a block grant from Westminster.
But Scotland now has major new tax raising powers. Over £11 billion of income tax was devolved in April 2017; the UK’s stamp duty system for property transactions had already been replaced by a Scottish-only Land and Buildings Transaction Tax; from next April Air Passenger Duty will no longer apply on flights from Scottish airports and will be replaced with a new Air Departure Tax; whilst from April 2019 around half of all VAT revenues raised in Scotland will be assigned to the Scottish Budget.
Soon, half of the Scottish Parliament’s day-to-day discretionary spend will be determined by revenues raised in Scotland. These new powers give the Scottish Parliament much more autonomy to do things differently. With SNP conference round the corner, and with the devolved budget under pressure, it’s worth asking just how much change has been made—and how much more is required.