Super devo max and moves towards a federal britain
Download
1 / 11

Super ‘ devo -max’ and moves towards a federal Britain - PowerPoint PPT Presentation


  • 105 Views
  • Uploaded on

Super ‘ devo -max’ and moves towards a federal Britain. Iain Mclean, Oxford University [email protected] For LSE Workshop 01.07.14. Outline of remarks. What is devo -max? All the political parties, including SNP, say they want it So do the Scottish people

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about ' Super ‘ devo -max’ and moves towards a federal Britain' - adler


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
Super devo max and moves towards a federal britain

Super ‘devo-max’ and moves towards a federal Britain

Iain Mclean, Oxford University

[email protected]

For LSE Workshop 01.07.14


Outline of remarks
Outline of remarks

  • What is devo-max?

    • All the political parties, including SNP, say they want it

    • So do the Scottish people

    • But nobody has defined it

  • Building on Calman

    • Focus on taxing not spending

  • Or indy-minus

    • Why the White Paper scheme would actually be devo-max


What is devo max
What is devo-max?

  • Working definition: ‘more than Calman and less than independence’

  • On that definition, all parties including SNP are for devo-max

    • Can take Cons plan as an e.g. (the most radical and realistic of the unionist parties)

  • But devo-max is not on offer on 18.09.14


The strathclyde commission main points
The Strathclyde Commission – main points

  • SP to fix all rates and bands of income tax

  • Mini-OBR (‘Scottish Fiscal Commission’)

    • Comment: Scotland already watched by OBR and Stats Auth

  • State pension to stay with UK

  • Consider devolving other taxes

    • Comment – why not assign VAT, excises?


Why the sg offer is really devo max not indy
Why the SG offer is really devo-max not indy

  • ‘Nothing will change’ again and again

    • E.g., BBC, monarchy

    • Accepts will have to use UK tax and welfare regimes until new ones ready

  • If rUK were to make shared currency offer it would come with v tight conditions (cf Carney, Macpherson)

  • They wd include control on tax-and-spend


Building on calman
Building on Calman

  • It’s fashionable to say that Calman (≈ Scotland Act 2012) is dead on arrival.

  • All unionist parties want to go further

  • But almost nobody understands what Calman actually proposes

    • Matching marginal spend with marginal tax

    • 10p in £ of income tax is enough to achieve this

    • Devolving the whole of income tax doesn’t add a lot


How to max out devolution
How to max out devolution

  • Go tax by tax, not spending area by spending area

  • Focus on the big ones:

    • VAT

    • Corporation Tax

    • National Insurance.

  • By elimination, only NI offers much scope….


Do we want social union or postcode lottery
Do we want social union or postcode lottery?

  • Most survey evidence says the people want social union

    • Therefore want benefit rates and terms to be constant UK-wide

    • But devolving NICs puts this in question

  • Would the people really want devo-max if they faced a consistency contraint?


Devo max and fiscal federalism
Devo-max and fiscal federalism

  • Would it be just for Scotland?

  • Wales would prefer needs assessment (Holtham)

  • NI doesn’t know what it wants, except control of Corp Tax (dreadful idea – ask Amazon or Google)

  • North of England with Wales

  • London has the only REAL interest in f.f.


Conclusion
Conclusion

  • Devo-max is not fiscal federalism

  • But Δtransparency on inter-regional tax-and-spend increases pressure for federalism


For further reading
For further reading

  • I McLean et al, Scotland’s Choices 2nd edn

  • I. McLean et al ed., Enlightening the Constitutional Debate

  • Report of the Strathclyde Commission


ad