Scottish government hails Calman report
A report into the potential unravelling of the UK, now known as the Calman report, is set to be released to the public this week. However, a number of proposals have been leaked to the press amid claims that we could see a halfway house between full devolution and fiscal autonomy for Scotland. This is a major step forward for the Scottish economy and while there are many positives in the short to medium term there may be long-term issues regarding the strength of a standalone Scottish economy.
It looks as though the UK government will give the Scottish parliament control of up to £6 billion worth of tax income from Scotland and deduct this from the £35 billion settlement which the country receives under the Barnett formula. It is a little uncertain at this moment in time exactly what powers the Scottish parliament would receive under any new settlement (although it is worthwhile remembering these are only proposals at the moment) but there appears to be a push for change in the short to medium term.
It will be interesting to see if any changes in the funding formula affect the devolution vote in Scotland which has been fairly volatile over the last few years.
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