Moving UK budget to autumn will impact Scotland, warns CIoT

Plans by Chancellor Philip Hammond to abolish the Autumn Statement and move the UK budget from spring to autumn will have a direct impact on the ongoing budget review process in Scotland, the Chartered Institute of Taxation has warned.

While the professional body welcomed the idea, it said tax policy making in Scotland will need to reflect the changes.

Otherwise, it said, the Scottish budget would be left with inadequate time for scrutiny.

The CIOT had been joined by the International Monetary Fund, Institute for Government, the CBI, and the Institute of Fiscal Studies in calling for a “single fiscal event” to simplify the tax system and ensure taxpayers would not be hit by as frequent changes.

Moira Kelly, Chair of the CIOT Scottish Technical Committee said: “Despite the devolution of a range of tax raising powers to the Scottish Parliament, the Scottish budget making process remains heavily dependent on the interactions with – and implications of – decisions taken at Westminster.

 “Today’s decision will clearly have implications for future Scottish fiscal events and in particular, the timing of future draft Scottish Budgets.

 “If the UK Budget is to be moved to the autumn, then the Scottish Government may feel pressure to ensure their draft Scottish Budget is prepared after the UK fiscal event, as was the case in 2015 and 2016 and potentially resulting in inadequate time with which to scrutinise the Scottish budget."