1st report – The financing of the Scottish Government

Select Committee
Scottish Affairs Committee HC 456 16 July 2025
Report Status Government responded
Conclusions & Recommendations 19 items (7 recs)
Source View on Parliament website
Government Response (AI assessment · 19 of 19 classified)
Accepted 6
Accepted in Part 1
Acknowledged 4
Deferred 6
Not Addressed 2
Government response
3rd Special Report – The Financing of the Scottish Government: Government response · published 17 Oct 2025
Read the government response ↗ Response on the tracker
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Recommendations & Conclusions

2 results
18 Conclusion 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 … Read more
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.
Scotland Office
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19 Recommendation Not Addressed
Explain feasibility of VAT revenue assignment and update on implementation progress by 2026
Recommendation
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 Summary
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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