Key issues in relation to the devolution of additional tax powers

Following on from the referendum on independence, there is a willingness from all five of Scotland’s political parties to strengthen the powers of the Scottish Parliament within the UK. Lord Smith of Kelvin is overseeing the process to take forward the devolution commitments on further powers for the Scottish Parliament.
This briefing highlights what tax powers are currently devolved and sets out some of the possible considerations in relation to the devolution of further tax powers. It also looks at the implications of further devolution on public finances, and in particular how it would affect the block grant and the need for greater borrowing powers. Lastly, it provides an overview of the political proposals in relation to further devolution and an analysis of the advantages and challenges associated with devolving further taxes, as well as information about tax devolution in other parts of the OECD