Jonathan Werran 04 June 2014

The Queen’s Speech commits to further tax devolution

A commitment to devolving further fiscal powers to Scotland and Wales were a key part of the Queen’s Speech today.

The speech stated: ‘My ministers will continue to implement new financial powers for the Scottish Parliament and make the case for Scotland to remain a part of the United Kingdom.’

The speech also outlined plans to progress with new legislation for giving Wales more power over taxation and investment, and a commitment to continue with the devolved administration in Northern Ireland.

However, the speech did not include any measures for transferring tax-raising or borrowing powers to England.

Policy documents released alongside the Queen’s Speech referred to the Scotland Act 2012 as representing ‘the greatest single transfer of responsibility in the history of the United Kingdom’. Under its provisions, from 2015 stamp duty and landfill tax will no longer apply in Scotland and the Scottish Parliament would have powers to introduce new Scottish taxes to replace them. Scottish Ministers would also have enhanced borrowing powers and access to a cash reserve to manage revenues.

The Wales Bill contains the almost wholescale adoption of recommendations from the Silk Commission report on devolution in Wales. The Bill would also give Welsh ministers new powers to borrow cash and manage capital expenditure.

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