Fiscal framework review - stakeholder call for evidence

Closes 19 Sep 2022

Opened 29 Jul 2022

Overview

Overview

This call for evidence is seeking views on the design and operation of the Block Grant Adjustment mechanisms which form part of the Scottish Fiscal Framework. In particular, views are sought on how the Block Grant Adjustments allocate risk and deliver on principles described by the Smith Commission, and which are intended to underpin the Scottish Fiscal Framework.

Changes to the Scottish Block Grant are largely calculated by the Barnett formula, but adjustments need to be made to reflect that some of the budget is now funded by Scottish tax revenues previously retained by the UK Government, and because the Scottish Government now has responsibility for elements of welfare.

This call for evidence has been developed by the report authors and is being jointly hosted by both the Scottish and UK Governments.

Why your views matter

The original Fiscal Framework agreement states that a review of the framework should occur after a parliament's worth of experience, and that the review should be preceded by an independent report presented to both governments. The review will begin shortly after the report has been completed.

The report, jointly commissioned by both the Scottish and UK Governments on the 27 June 2022, will evaluate the block grant adjustment funding arrangements for tax and welfare devolution against the principles agreed by the Smith Commission.

The report will be co-authored by Professor David Bell (University of Stirling), David Eiser (Fraser of Allander Institute at the University of Strathclyde) and David Phillips (Institute for Fiscal Studies), who are leading experts and have published extensively on the Fiscal Framework.

The purpose of this call for evidence is to gather views to inform the report which represents the first step towards the review of the Fiscal Framework.

Interests

  • Economy
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