Budget 2021/22: Supporting the COVID-19 Recovery

Page 1 of 5

Closes 8 Oct 2020


1. How should the Scottish Government use its devolved and local tax powers to support the COVID-19 recovery as part of Budget 2021-22?

Your response should contain policy proposals in relation to:

1.    devolved and local taxes as part of the Covid-19 recovery, with a focus on Budget 2021-22; and
2.    where applicable, any longer-term tax policy considerations for the Scottish Government.

Where possible, please consider the role of tax policy in the COVID-19 recovery, in particular balancing potential trade-offs between raising revenue to fund public services and COVID-19 support; stimulus for individuals and businesses most affected by the crisis; and supporting a greener, fairer and more equal society and economy.

2. Are there any further tax powers that should be devolved to the Scottish Parliament to facilitate our ability to support the economic recovery?

You may wish to consider the list of reserved tax powers (more information available below) and how or whether these could be used more effectively in a Scottish context. You may also wish to consider which tax policy and powers you think are better suited at a UK wide level.

More Information

3. Are there any new tax proposals you would like to see implemented by the Scottish Government?

You may wish to express views on new tax ideas or proposals as part of the COVID-19 recovery.  Please consider whether your proposals fall within the scope of current devolved powers, including suitability for devolution using the mechanism for new national devolved taxes under the Scotland Act.

More Information

The Scottish Parliament has the power to create new local taxes. There is also a mechanism allowing the UK Parliament, with the consent of the Scottish Parliament, to devolve powers for new national devolved taxes to be created in Scotland.    

4. What particular fiscal challenges have been highlighted as a result of the COVID-19 emergency?

Your response should contain any observations and evidence on how the devolved fiscal powers have or have not been sufficient to deal with this exceptional situation and what this reveals about the need for change.

5. What changes, if any, should be made to the scope of devolved fiscal powers under the Fiscal Framework?

Your response should contain proposals for any changes to fiscal powers (e.g. borrowing, use of the Scotland Reserve). Where possible, explain the rationale for extending or limiting powers, including whether and what borrowing and Reserve limits should be changed or abolished?

6. What fiscal rules should the Scottish Government follow?

Fiscal rules set out how a government uses its fiscal powers (e.g. self-imposed limits on borrowing).  Your response should set out whether there are any rules that are of particular importance now, or in conjunction with a future extension in the scope of fiscal powers.