Source · Select Committees · Scottish Affairs Committee
Recommendation 1
1
Accepted
Full fiscal autonomy for Scotland is not a realistic or workable proposition.
Conclusion
We note the Scottish Government’s call for full fiscal autonomy, but do not consider that this currently appears to be a realistic prospect. Fundamental questions remain about how full fiscal autonomy would work in practice, and whether it would be operable within the constraints of the UK’s current devolution settlement. Practicality aside, we do not believe that a compelling case has been made that such a change would automatically result in Scotland receiving a higher level of funding. Given that the Scottish Government did not accept the invitation to come before us to explain its proposal and respond to these fundamental questions, we do not see how we can consider this a serious proposition, and we remain to be convinced that this proposal is desirable in principle, let alone workable in practice. (Conclusion, Paragraph 20)
Government Response Summary
The government agreed with the committee's conclusion that full fiscal autonomy is not a serious proposition, contrasting it with the financial stability provided by the UK and highlighting a potential £14 billion funding gap for Scotland.
Government Response
Accepted
HM Government
Accepted
The financial certainty and stability provided by the UK Government stands in contrast to the Scottish Government’s position to scrap the Barnett Formula, which would be a recipe for economic chaos and permanent austerity for Scotland. The most recent Government Expenditure and Revenue Scotland statistics for 2024/25, published in August, showed a net fiscal transfer of £2,578 per person in Scotland compared to UK average. This points to a £14 billion funding gap that the Scottish Government would need to manage under Full Fiscal Autonomy.