Fiscal autonomy for Scotland
Encyclopedia
Full fiscal autonomy, sometimes referred to as devolution max, devo-max or fiscal federalism, has come to be used to describe a situation where instead of receiving a block grant
from the UK Exchequer as at present, the Scottish Parliament
would receive all taxation levied in Scotland
and would then make payment to the UK government to cover Scotland's share of the cost of providing UK services. Scottish fiscal autonomy, stopping short of full political independence, is usually promoted by advocates of a federal
or confederal constitution for the United Kingdom.
Broadly speaking, a greater percentage of those who support further moves towards Scottish independence
support a move to greater fiscal autonomy while a greater percentage of those who wish to retain the Union between Scotland and the rest of the UK would be opposed. As early as July 2001, former Conservative Party
chancellor Kenneth Clarke
, said be believed fiscal autonomy would be "disastrous for the Scottish economy". On the other hand, Robert Crawford, the former head of Scottish Enterprise
, said in February 2004 that the Scottish economy "could be improved" by fiscal autonomy.
David Cameron
, the present leader of the Conservative Party
and Prime Minister, had previously made it clear that he would not stand in the way of handing full taxation powers to the Scottish Parliament if the idea was supported by the Scottish Conservative Party, although they ultimately listen to his direction.
The 2010 Scottish Social Attitudes Survey
core finding was that while just 28% of respondents supported Scottish independence
, a majority support 'devo max' with 60% of respondents wanting the Scottish Parliament
to control Scotland's £18 billion welfare
bill (including power over public pensions and benefits), and a majority (59%) also supported taxation levels being decided in Edinburgh rather than London.
Government in May 2011, committed to holding an independence referendum, has also brought the possibility that Fiscal Autonomy could be an extra option in the vote. Some senior Labour Party figures have also suggested that they would support devo max, including Malcolm Chisholm
MSP, Mark Lazarowicz
MP, and former First Minister
Henry McLeish
.
A public opinion poll carried out at the end of October 2011 for the BBC Politics Show indicated that devo-max was the most popular option with Scottish voters: 33% backed devo-max, 28% supported independence and 29% backed no further constitutional change.
Block grant
In a fiscal federal form of government, a block grant is a large sum of money granted by the national government to a regional government with only general provisions as to the way it is to be spent...
from the UK Exchequer as at present, the Scottish Parliament
Scottish Parliament
The Scottish Parliament is the devolved national, unicameral legislature of Scotland, located in the Holyrood area of the capital, Edinburgh. The Parliament, informally referred to as "Holyrood", is a democratically elected body comprising 129 members known as Members of the Scottish Parliament...
would receive all taxation levied in Scotland
Scotland
Scotland is a country that is part of the United Kingdom. Occupying the northern third of the island of Great Britain, it shares a border with England to the south and is bounded by the North Sea to the east, the Atlantic Ocean to the north and west, and the North Channel and Irish Sea to the...
and would then make payment to the UK government to cover Scotland's share of the cost of providing UK services. Scottish fiscal autonomy, stopping short of full political independence, is usually promoted by advocates of a federal
Federation
A federation , also known as a federal state, is a type of sovereign state characterized by a union of partially self-governing states or regions united by a central government...
or confederal constitution for the United Kingdom.
Broadly speaking, a greater percentage of those who support further moves towards Scottish independence
Scottish independence
Scottish independence is a political ambition of political parties, advocacy groups and individuals for Scotland to secede from the United Kingdom and become an independent sovereign state, separate from England, Wales and Northern Ireland....
support a move to greater fiscal autonomy while a greater percentage of those who wish to retain the Union between Scotland and the rest of the UK would be opposed. As early as July 2001, former Conservative Party
Conservative Party (UK)
The Conservative Party, formally the Conservative and Unionist Party, is a centre-right political party in the United Kingdom that adheres to the philosophies of conservatism and British unionism. It is the largest political party in the UK, and is currently the largest single party in the House...
chancellor Kenneth Clarke
Kenneth Clarke
Kenneth Harry "Ken" Clarke, QC, MP is a British Conservative politician, currently Member of Parliament for Rushcliffe, Lord Chancellor and Secretary of State for Justice. He was first elected to Parliament in 1970; and appointed a minister in Edward Heath's government, in 1972, and is one of...
, said be believed fiscal autonomy would be "disastrous for the Scottish economy". On the other hand, Robert Crawford, the former head of Scottish Enterprise
Scottish Enterprise
Scottish Enterprise is a sponsored non-departmental public body of the Scottish Government which encourages economic development, enterprise, innovation and investment in business...
, said in February 2004 that the Scottish economy "could be improved" by fiscal autonomy.
David Cameron
David Cameron
David William Donald Cameron is the current Prime Minister of the United Kingdom, First Lord of the Treasury, Minister for the Civil Service and Leader of the Conservative Party. Cameron represents Witney as its Member of Parliament ....
, the present leader of the Conservative Party
Conservative Party (UK)
The Conservative Party, formally the Conservative and Unionist Party, is a centre-right political party in the United Kingdom that adheres to the philosophies of conservatism and British unionism. It is the largest political party in the UK, and is currently the largest single party in the House...
and Prime Minister, had previously made it clear that he would not stand in the way of handing full taxation powers to the Scottish Parliament if the idea was supported by the Scottish Conservative Party, although they ultimately listen to his direction.
The 2010 Scottish Social Attitudes Survey
Scottish Social Attitudes Survey
The Scottish Social Attitudes Survey, started in 1999, is an annual survey of public opinion in Scotland, funded by the public purse.Conducted by the Scottish branch of the National Centre for Social Research, in conjunction with the Unit for the Study of Government in Scotland at the University of...
core finding was that while just 28% of respondents supported Scottish independence
Scottish independence
Scottish independence is a political ambition of political parties, advocacy groups and individuals for Scotland to secede from the United Kingdom and become an independent sovereign state, separate from England, Wales and Northern Ireland....
, a majority support 'devo max' with 60% of respondents wanting the Scottish Parliament
Scottish Parliament
The Scottish Parliament is the devolved national, unicameral legislature of Scotland, located in the Holyrood area of the capital, Edinburgh. The Parliament, informally referred to as "Holyrood", is a democratically elected body comprising 129 members known as Members of the Scottish Parliament...
to control Scotland's £18 billion welfare
Welfare
Welfare refers to a broad discourse which may hold certain implications regarding the provision of a minimal level of wellbeing and social support for all citizens without the stigma of charity. This is termed "social solidarity"...
bill (including power over public pensions and benefits), and a majority (59%) also supported taxation levels being decided in Edinburgh rather than London.
Since the 2011 election of a SNP majority government
The election of a majority Scottish National PartyScottish National Party
The Scottish National Party is a social-democratic political party in Scotland which campaigns for Scottish independence from the United Kingdom....
Government in May 2011, committed to holding an independence referendum, has also brought the possibility that Fiscal Autonomy could be an extra option in the vote. Some senior Labour Party figures have also suggested that they would support devo max, including Malcolm Chisholm
Malcolm Chisholm
Malcolm Chisholm is a Scottish Labour Party politician, and a former Scottish Executive minister.-Background:Chisholm was educated at George Watson's College and the University of Edinburgh and became an English teacher. He is married with three children...
MSP, Mark Lazarowicz
Mark Lazarowicz
Mark Lazarowicz, is a British Labour Co-operative politician who has been the Member of Parliament for Edinburgh North and Leith since 2001...
MP, and former First Minister
First Minister of Scotland
The First Minister of Scotland is the political leader of Scotland and head of the Scottish Government. The First Minister chairs the Scottish Cabinet and is primarily responsible for the formulation, development and presentation of Scottish Government policy...
Henry McLeish
Henry McLeish
Henry Baird McLeish is a Scottish Labour Party politician, author and academic. Formerly a professional association football player, McLeish was the Member of Parliament for Central Fife from 1987 to 2001 and the Member of the Scottish Parliament for Central Fife from 1999 to 2003, during which...
.
A public opinion poll carried out at the end of October 2011 for the BBC Politics Show indicated that devo-max was the most popular option with Scottish voters: 33% backed devo-max, 28% supported independence and 29% backed no further constitutional change.
See also
- Fiscal federalismFiscal federalismAs a subfield of public economics, fiscal federalism is concerned with "understanding which functions and instruments are best centralized and which are best placed in the sphere of decentralized levels of government"...
- Economy of ScotlandEconomy of ScotlandThe economy of Scotland is closely linked with the rest of the United Kingdom and the wider European Economic Area. Scotland has the second largest GVA per capita of countries in the United Kingdom after England, though it is still lower than the average of the United Kingdom as a whole...
- Government Expenditure and Revenue ScotlandGovernment Expenditure and Revenue ScotlandGovernment Expenditure and Revenue Scotland is an annual report published by the Scottish Government. Its aim is to increase public understanding of fiscal policy in Scotland, especially fiscal tranfers to and from the UK Exchequer....
- Government spending in the United KingdomGovernment spending in the United KingdomCentral government spending in the United Kingdom, also called public expenditure, is the responsibility of the UK government, the Scottish Government, the Welsh Government and the Northern Ireland Executive...
- List of Scotland-related topics
- Politics of ScotlandPolitics of ScotlandThe Politics of Scotland forms a distinctive part of the wider politics of Europe.Theoretically, the United Kingdom is de jure a "unitary state" with one sovereign parliament and government...
- Scottish IndependenceScottish independenceScottish independence is a political ambition of political parties, advocacy groups and individuals for Scotland to secede from the United Kingdom and become an independent sovereign state, separate from England, Wales and Northern Ireland....
- Scottish parliamentScottish ParliamentThe Scottish Parliament is the devolved national, unicameral legislature of Scotland, located in the Holyrood area of the capital, Edinburgh. The Parliament, informally referred to as "Holyrood", is a democratically elected body comprising 129 members known as Members of the Scottish Parliament...
- Union dividendUnion dividendThe Union dividend is a term used by British unionists to describe the financial benefits which they believe that Scotland and Wales derive from being parts of the United Kingdom....