Come clean on £13bn hole in full fiscal autonomy policy, Michael Marra tells ministers

The Scottish Government must “come clean” on what its backing for full fiscal autonomy would mean for Scotland’s finances, Labour has said.

The party’s finance spokesperson Michael Marra said the policy would result in £13bn less for public services, and he criticised ministers for not informing the Scottish Fiscal Commission (SFC).

It follows Graeme Roy, chair of the SFC, telling Holyrood’s finance committee that the forecaster had “not looked at anything like full fiscal autonomy” because ministers had not informed them of any change to fiscal policy.

Full fiscal autonomy is broadly understood to mean the Scottish Parliament would have full control of taxes and take full responsibility for domestic expenditure (excluding defence, foreign policy and security).

In a letter to Westminster’s Scottish Affairs Committee in January, Finance Secretary Shona Robison confirmed it was the government’s second preferred option – after full independence.

She wrote: “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.”

But critics of such a policy points to the most recent Government Expenditure and Revenue Scotland (GERS) figures, published by the Scottish Government, which state the net fiscal balance in 2023-24 was -£22,684m.

This is the difference between revenue and current expenditure.

Thinktank These Islands has calculated that, based on these figures and allowing for fiscal transfer, this would result in £12.8bn less for Scotland’s public purse.

Marra said: “I was shocked to hear Professor Roy reveal that the Scottish Government has not even bothered to communicate this significant policy change to the SFC.

“Perhaps Shona Robison didn’t want to give the SFC the chance to confirm that full fiscal autonomy would wipe nearly £13bn off Scotland’s finances.

“The only thing more ludicrous than the SNP’s latest fiscal position is its failure to inform the nation’s independent forecaster. The SNP must urgently come clean on why it would voluntarily give up £13bn, and how they would pay for key services like Scotland’s NHS without it.”