Institute for Research in Economic and Fiscal issues

IREF Europe - Institute for Research in Economic and Fiscal issues

Fiscal competition
and economic freedom


Will Scottish Government Grasp its Chance for Financial Autonomy?

While some states, departments and cantons around the world are struggling for more fiscal autonomy, the Scottish government is hesitating to grasp at the opportunity offered by the UK government. The proposal of the new Scotland bill is to allow the Scottish government to increase or cut income tax rates by up to 50% for basic rate taxpayers, and by 20% at the highest rate. In exchange, the central government in Westminster plans to cut a part of its transfers to Scotland. It makes sense, since “autonomy” usually goes with “responsibility”.

May be the later is what the Scottish government dislikes in the deal?

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