Source · Select Committees · Scottish Affairs Committee
Recommendation 18
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 AI-generated
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
The government responded to this report on 17 October 2025. No passage in that response could be matched to this conclusion. Read the response document ↗