Scottish government publishes draft Fiscal Commission Bill

The Scottish government has published draft legislation which would give a statutory footing to the Scottish Fiscal Commission and marks an “important milestone” on the journey to further fiscal devolution.

The Scottish Fiscal Commission Bill will also provide a legislative basis to expand the commission’s scope as further fiscal powers are devolved to the Scottish Parliament.

The commission was originally established last year to produce revenue forecasts from Scotland’s new devolved taxes, but its role is expected to expand as further fiscal power is transferred to Holyrood.

The bill was introduced in the Scottish Parliament today following a period of consultation between March and June 2015.

Deputy First Minister John Swinney said: “The Scottish Fiscal Commission already plays an important role in providing independent scrutiny of the Scottish Government’s budget forecasts of devolved tax income.

“The Scottish Fiscal Commission Bill – a Programme for Government commitment – puts the Commission on a statutory footing, ensuring its permanence, transparency and accountability and supporting delivery of the First Minister’s commitment to lead the most open and accessible government that Scotland has ever had.

“It’s paramount to the effectiveness and credibility of the Commission that it is structurally, operationally and visibly independent and the bill published today will deliver that. Our policy proposals have been informed by responses to our recent consultation as well as international best practice, including the work of the OECD and the International Monetary Fund.”

He added: “The establishment of the Scottish Fiscal Commission as a statutory body is another important milestone on the journey to enhance Scotland’s fiscal powers.

“It plays a key role in supporting the exercise of the devolved tax powers the Scottish Parliament already has and this bill creates a basis for the Commission to expand its functions over time, alongside the expansion of the Parliament’s fiscal powers.”