Source · Select Committees · Scottish Affairs Committee
Recommendation 19
19
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 also call on the UK Government, by the summer of 2026, to write to us with an update on the progress made to date on implementing VAT assignment. (Recommendation, Paragraph 121) 47
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.
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.