MSPs call for fiscal commission powers to be bolstered

Official forecasts on devolved taxes should be produced by an independent commission rather than government ministers, according to a Holyrood committee.

The Scottish Parliament is considering a bill that will put the Scottish Fiscal Commission - which will scrutinise new tax and borrowing powers being devolved - on a statutory footing.

MSPs on the Finance Committee have said the commission’s remit should be expanded to bolster its actual and perceived independence from the Scottish Government.

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As part of such efforts, the draft legislation should be amended to give the SFC power to produce official projections rather than simply signing off on government’s.

“The Committee believes that there is currently a lack of institutional capacity within Scotland providing independent scrutiny of the public finances and that the commission provides a substantial opportunity to help fill that gap,” states the Stage 1 report.

As such, MSPs have also called for a widening of the commission’s role to include assessing how well government performs against its fiscal rules as well as the long-term sustainability of the public finances.

Any disagreements the commission has with government and the outcome of these disagreements should also be published, the committee added.

SNP MSP Kenneth Gibson, who convenes the committee, said: “The committee welcomes the establishment of the commission on a statutory basis and believes it has an important role in providing independent scrutiny of the public finances in Scotland.

“However, we are strongly of the view that not only should the Scottish Fiscal Commission be independent, but it is vital that it is perceived to be independent. That is why we are calling for the Bill to be amended to strengthen the commission’s role and to give it responsibility for producing the official forecasts.”