Scottish Fiscal Commission Bill comes before the Parliament
The bill to put the Scottish Fiscal Commission on a statutory basis has been published in the Scottish Parliament today.
An independent group of economic experts, the Commission was set up in 2014 ahead of the introduction of the first devolved taxes, to scrutinise the Government’s devolved tax forecasts. It also has a role in scrutinising the economic factors that underpin forecast receipts from non-domestic rates. Under the bill it will review ministers' tax and borrowing forecasts.
The bill will also provide a legislative basis to expand the Commission’s scope as further fiscal powers are devolved to the Scottish Parliament.
Deputy First Minister and Cabinet Secretary for Finance, John Swinney said: “It’s paramount to the effectiveness and credibility of the Commission that it is structurally, operationally and visibly independent and the bill published today will deliver that. Our policy proposals have been informed by responses to our recent consultation as well as international best practice, including the work of the OECD and the International Monetary Fund.
“At present, the Commission scrutinises our forecasts for income from the new land and buildings transaction tax and the Scottish landfill tax, which went live on 1 April this year.
“But it is important to note that the Smith Commission recommended devolving various other fiscal powers and, as those powers come to the Scottish Parliament, we want the Commission’s remit to expand to reflect these new powers.
“The Scottish Fiscal Commission Bill published today provides a basis for that. This bill also provides the Commission with a role in scrutinising the Scottish Government’s future borrowing projections – from financial year 2015-16, we have the capacity to undertake limited capital borrowing under the Scotland Act 2012."