THE SNP Government should not pursue its support for full fiscal autonomy within the UK, the former Yes campaign chair has said.
It comes after Finance Secretary Shona Robison restated the Scottish Government’s long-held position that it should have complete control over Scottish finances, including tax and welfare.
In a letter to the Scottish Affairs Committee at Westminster in January, which is running an inquiry into the financing of the Scottish Government, Robison said: “The Scottish Government believes that independence would deliver the best deal for Scotland – providing control over all public spending decisions, as well as the suite of fiscal powers necessary to unlock Scotland’s full economic potential.
“However, until such a time as the people of Scotland can choose a different constitutional arrangement, moving to full fiscal autonomy for the Scottish Government would create a fairer system that would protect public services and allow investment in our economy.”
Highlighting that the SNP Government had outlined its support for fiscal autonomy in 2014 “when Scotland’s devolved fiscal arrangements were last subject to substantial review”, Robison went on to outline what full fiscal autonomy would look like.
“Full fiscal autonomy would mean that all onshore and offshore taxes would be designed and set in Scotland, including tax rates, allowances, thresholds and the tax bases,” she said.
“For any reserved taxes, revenues would be assigned to the Scottish Budget. At the same time, the Scottish Parliament would also take responsibility for key elements of domestic expenditure, including currently reserved areas of welfare.
“From the tax revenue raised in Scotland, a direct payment would be made for those responsibilities which remain reserved to the UK Government, including defence, security and foreign policy.”
"So-called full fiscal autonomy is not possible in a devolved structure because it would not give the Scottish Government, or the Scottish Parliament, full powers on public spending,” he said.
"As long as some matters are reserved to Westminster, the Scottish Government would be obliged to pay a share of the cost of reserved matters like defence or foreign affairs.
"The Scottish Government would therefore be obliged to pay a share of the cost of Trident and its replacement, even if a majority of MSPs were opposed to nuclear weapons."
Canavan went on: "Real full fiscal autonomy is only possible in an independent Scotland whereby the sovereignty of Westminster is replaced by the sovereignty of the people of Scotland.
"That would mean the Scottish Parliament having full legislative powers as well as full economic powers, including full powers on revenue, expenditure and borrowing.
"Those who really believe in independence should settle for nothing less."
Scottish Labour’s Michael Marra last month tried to paint the Scottish Government’s support for full fiscal autonomy as a “significant policy change”, telling MSPs he was “shocked” to hear it.
However, Robison said in her January letter that the Government’s views have not changed since 2014.
