The financing of the Scottish Government

Scottish Affairs Committee Closed Inquiry
Opened: 21 Nov 2024 Closed: 20 Oct 2025 Parliament page
This inquiry is examining the framework for fiscal devolution in Scotland. The Committee is evaluating the effectiveness of the Barnett formula and the fiscal framework in calculating the amount of money available for providing devolved services in Scotland. As part of this, the Committee is examining the interaction between UK … Read more
7 Recommendations
12 Conclusions
1 Report
1 Oral session
2 Letters
2 Events
Activity timeline 7 events
17 Oct
2025
Report published
16 Jul
2025
Report published
9 Jul
2025
Formal meeting (private meeting) · Room 15, Palace of Westminster
5 Feb
2025
Correspondence
29 Jan
2025
Oral evidence
29 Jan
2025
Formal meeting (oral evidence session) · Room 15, Palace of Westminster
22 Jan
2025
Correspondence
Oral evidence sessions 1 session
29 Jan 2025
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Claire Murdoch · NHS England David Phillips · Institute for Fiscal Studies Dr João Sousa · Fraser of Allander Institute
Title HC No. Published Items Response
1st report – The financing of the Scottish Government HC 456 16 Jul 2025 19 Responded
Recommendations & Conclusions
2 results
Clear
18 Conclusion Not Addressed
1st report – The financing of the …
Assignment of VAT revenues to Scotland faces significant, likely insurmountable, implementation challenges
It seems highly unlikely to us that the assignment of VAT revenues will ever come into force. It is clear that implementing the assignment poses a significant challenge, and given the amount of time that has passed since the change … Read more
Government Response
The government acknowledged continuing work on Smith Commission recommendations, including VAT Assignment, but did not directly address the committee's conclusion that its implementation seems highly unlikely and unrealistic.
Scotland Office
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19 Recommendation Not Addressed
1st report – The financing of the …
Explain feasibility of VAT revenue assignment and update on implementation progress by 2026
We call on the UK Government, in its response to this report, to explain why it thinks the assignment of VAT revenues is still possible, despite robust views to the contrary, and whether the Scottish Government shares this position. We … Read more
Government Response
The government stated that HM Treasury will continue to work with the Scottish Government to deliver Smith Commission recommendations, including VAT Assignment, but did not explain why it thinks assignment is possible or commit to a 2026 update as requested.
Scotland Office
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Government Response AI assessment · 19 of 7 classified
Accepted 6
Accepted in Part 1
Acknowledged 4
Deferred 6
Not Addressed 2
Total 7 recs + 12 conclusions
Correspondence 2 letters
5 Feb 2025 Correspondence from David Phillips, Associate Director, Institute for Fiscal Studies, regarding the financing of the Scottish Government, dated 30 January 2025
Parliament page
22 Jan 2025 Correspondence from Shona Robison MSP, Scottish Government, regarding the financing of the Scottish Government inquiry, dated 16 January 2025
Parliament page