Fiscal Policy

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David Eiser reports from a seminar at the Centre on Constitutional Change led by Carlo Cottarelli of The International Monetary Fund. Carlo shed light on how devolved fiscal powers are operationalised across a sample of 13 federal countries.

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George Osborne made a typically robust defence of his economic record in the last Autumn Statement of this Parliament. Some of the measures he announced may well pay electoral dividends. Although the amounts involved are relatively small, the reduction of Air Passenger Duty for children and the revision of stamp duty in England will no doubt shore up support in the Conservative heartlands.

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Smith Poll: Holyrood Should Control Tax & Welfare - Report & Press Release

A poll probing attitudes to the Smith Commission and its terms of reference has found that 63% of Scots support the full devolution of both taxes and welfare benefits, including unemployment benefit[i]. There were also significant majorities for the devolution of pensions (58%), energy policy (57%) and environmental legislation (62%)[ii]. The Scottish Parliament retained sizeable  majority support for control in all policy areas except immigration, defence and foreign affairs.

The devolution of income tax has received considerable attention in the discussion surrounding the Smith Commission. In the fourth of the extracts from our recent e-book, Dr Angus Armstrong argues that devolving taxation without borrowing powers will leave nobody happy.
 
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Lord Smith is due to present his report on proposed additional powers for the Scottish Parliament on 27 November. In the first of a series of blogs taken from our upcoming e-book, Beyond Smith: Contributions to the continuing process of Scottish devolution, Professor Charlie Jeffery considers how the politics of fifteen years of devolution will determine the outcome. He argues that, while there is clearly room for compromise between the parties, each sees Smith as a staging post on very different journeys.

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