18
Not Addressed
Assignment of VAT revenues to Scotland faces significant, likely insurmountable, implementation challenges
Conclusion
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 was due to come into force, it is far from clear whether it is realistic or possible. (Conclusion, Paragraph 120) 46
Government Response Summary
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.
Government Response
Not Addressed
Government Response
Not Addressed
HM Government
Not Addressed
The Scottish Government has prioritised the devolution of powers to introduce a Building Safety Levy and the devolution of Aggregates Levy. HM Treasury will continue work with the Scottish Government to deliver the Smith Commission recommendations, including VAT Assignment.
Source
Committee
Scottish Affairs Committee
Report
1st report – The financing of the Scottish Government
16 Jul 2025
HC 456
Addressee Bodies
Scotland Office
Timeline
Recommendation age
0.9 yr
Report published
16 Jul 2025