I reproduce this from a press release issued by the Chartered Institute of Tax in Scotland this morning:
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Commenting on the tax implications for Scotland of an 11 March UK Budget date, Alexander Garden, chair of the Chartered Institute of Taxation's Scottish Technical Committee, said: |
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“A UK Budget on 11 March leaves MSPs with just a few days to react to changes made at Westminster and to agree what the rates and bands of Scottish Income Tax will be ahead of the start of the new tax year in April. “This matters because if MSPs fail to reach agreement — a scenario that could be seen as highly plausible in a parliament of minorities — Scotland would revert to the UK rates and bands of tax set by Westminster, effectively foregoing its ability to set its own income tax rates. “There remains the chance that Derek Mackay could choose to go it alone and outline his plans before 11 March, but in this situation, he would be constrained by not knowing the true extent of Scotland's fiscal picture. “None of these scenarios are appealing and mean we are facing a Scottish budget process that will be conducted at breakneck speed, with little room for manoeuvre”. |
Scotland has its own tax rates, but they are set as variation from UK rates.
What Sajid Javid is revealing is his contempt for the required due process of government in Scotland, as if he is indifferent to it.
No wonder support for independence is growing.
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FYI… this issue highlighted here: https://dailybusinessgroup.co.uk/2020/01/javid-sets-tight-timetable-for-mackay-with-11-march-budget/
Quelle surprise.
So – indifference, incompetence and an uncaring disregard of the consequences for the devolved nations or an act of deliberate political vandalism. Which could it be?
I’m guessing it’s all part of a Tory plan do destabilise and discredit Holyrood and Cardiff.
I think so
I believe it is an act of deliberate sabotage of devolution.
“….as if he is indifferent to it…..”
What, you mean as opposed to being deliberately difficult ?
He was asked by SNP MP Alison Thewliss “And isn’t it the truth that the Chancellor has given absolutely no thought to Scotland at all?” (The National) His reply demonstrated exactly how UK politics has descended into contempt for Scotland (and anyone who is not a true believer in the Tory nirvana) and deceit by refusing to address the question but merely repeating the the lie about Scotland being the highest taxed part of the UK with the worst public services. It’s this Goebbels-like lying which makes me very angry verging on hate for politicians like him.
I don’t know enough about Scottish tax rates to form a conclusion so I must ask – is this a dodgy way of effectively imposing tax cuts for the rich in Scotland?
P. S. always consider ulterior motives.
@Marco Fante
“— is this a dodgy way of effectively imposing tax cuts for the rich in Scotland?”
I would guess the main thrust is to undermine Holyrood’s ability to function effectively with the limited powers at its disposal. But if that includes forcing tax cuts for the rich that would be a bonus. 🙁
Anything that might shore-up the dwindling Tory vote in Scotland will be worth trying. Jeremy Corbyn I notice sports a faux tartan scarf …presumably that’s the best he feels he can achieve to shore-up support for Labour. 🙂
Andy,
If this a ruse to impose tax cuts for the rich – or enforce Westminster’s tax regime generally – then surely that (rather than ‘due process’) is the main issue here.
As for Labour in Scotland they really ought to forget the nostalgia and just make a coalition arrangement with the SNP. Its becoming increasingly obvious that the best (and perhaps only) way to get rid of the Tories is through the creation of a progressive alliance involving several parties It should have been done already.
AND SO MY FRIENDS IT BEGINS.UNPICKING AM THE GOOD WE HAVE DONE
We have a fairly unusual situation where the same party remains in government, so you might have expected fiscal events to continue on the same timetable as before, but its policies have changed substantially, and it is also fairly usual for a new government to deliver a budget shortly after a general election. The general election in mid-December left little time for the usual autumn fiscal event before or afterwards – you might recall Javid’s 2019 budget that never was, announced on 14 October for 6 November but cancelled just 10 days later.
This January will be taken up with Brexit discussions (WAB, etc) so there is really only February or March to have a budget before the end of the tax year. Not ideal of course, and you might have hoped that the particular situation in Scotland would have been taken into account. 11 March to 5 April is 25 days. It could have been worse – the budget could have been called for Wednesday 25 March or 1 April …
Since 2010 we have got used to a fairly rational process of tax policy announcements in the spring or the autumn, with draft legislation published for consultation, and final legislation published in the autumn to be enacted before the end of the tax year. I fear we might be going back to the bad old days, of policy announcements being revealed like rabbits from a hat without any notice, and tax legislation passed retroactively after the start of the tax year it affects without enough time for proper scrutiny.
My view is that it’s an unstated part of Tory strategy to undermine the devolved parliaments in order to have absolute power over all parts of mainland UK (I suspect that the Tories have decided that N Ireland is too complex and problematical and that they will simply let it go in the fullness of time via reunification). Their undermining strategy won’t be done by a full-frontal attack, like voting in Westminster to reverse the Scotland Act and the equivalent legislation which created devolution for Wales. Instead they’ll inflict a death of a thousand cuts by trimming back devolved powers and interfering in devolved processes by imposing their own investment/legislative etc policies without involving the devolved governments.
The current delays to devolved budget setting will also have a knock-on effect in Scotland beyond the setting of income tax rates and I suspect in Wales and NI too. Until the devolved governments know the UK Budget implications for the Block Grants they receive (the most significant source of their income), they, in turn, cannot give the local authorities (county councils, Fire services, Arts Councils and all other publicly-funded bodies) any indication of their funding for 2020-21, so all civic bodies will be left rudderless at the start of the new fiscal year. I’m not clear about how such civic bodies are funded in England, but I guess they’ll be in the same boat.
It’s clear that this UK Tory Govt is a fairly chaotic organisation, so an element of this mess may be down to its ignorance and incompetence (a pretty safe bet). However, in Scotland’s case, it’s also pretty clear that they have a deeply-ingrained contempt for the SNP and indeed, for the Scottish people other than their own diminishing band of supporters, so I’m sure that tampering and mischief-making in Scottish affairs are part of the strategy.
You may be right Ken
Equally, they may not be that clever
If this is malicious, it’s incompetent, because it will hardly contribute to the supposed project of keeping the UK together. If it’s incompetence, then it’s doubly incompetent, because it will be perceived as malice.