WIREDGOV

The HoL Economic Affairs Committee in its report "A Fracturing Union?" has strongly recommended that the Scotland Bill does not proceed to Committee Stage until the devolution fiscal framework is published.  The Committee states that the fiscal framework will be central to future financial devolution arrangements and Parliament cannot be expected to scrutinise the Bill without seeing the details.

Comments include:

• The Committee do not believe a 'no bail out' rule between the UK and devolved governments would be believed by the markets.  Instead the UK and Scottish Government’s should agree simple & clear borrowing rules and a maximum ceiling on Scottish Government debt.

• The Smith Commission suggested that there should be ‘no-detriment’ as a result of Scottish or UK Government policy decisions post devolution.  The Committee agreed with many of the witnesses that this is unworkable & a recipe for continuing conflict.

• The Barnett Formula is not a sustainable method to calculate funding.  This is particularly true in the context of further devolution of tax powers.  It should be modernised & replaced with a needs based funding formula for distributing funds to devolved administrations, which should reflect the additional needs of Scotland, Wales and Northern Ireland.

PC&PE:  Economic Affairs Committee calls for halt to the Scotland Bill

IFS:  Fiscal Framework is key to Scottish tax and welfare devolution

ScotGov:  Swinney calls for alternative to austerity

ScotGov:  Austerity continues as Chancellor imposes 6% cut

Daily Telegraph:  George Osborne - Independent Scotland would have faced 'catastrophic cuts'

DT:  George Osborne warns SNP ministers they face 'hard' choices

IPPR Scotland:  'Enormous challenge’ for Holyrood following larger than expected cut in Scotland grant

IFS:  Full fiscal autonomy delayed? The SNP's plans for further devolution to Scotland

ScotGov:  Greater gains from more fiscal control

IFS:  Scotland’s fiscal position improves in 2013–14 but this is set to stall as oil price falls bite

Well which is it; ‘austerity’ or ‘robust growth’ – it’s time for the SNP to stop ‘whining’ and spend the Barnett formula’s ‘+20%’ funding on ‘essentials’ not ‘freebies’ which England doesn’t get!

IFS - Spending cuts or tax increases would be needed to pay for Independence White Paper giveaways