MSPs note CIOT concern in report

A new report from the Scottish Parliament’s Finance and Constitution Committee draws attention to the CIOT’s suggestion that an annual Finance Bill for the Scottish Parliament be explored. The committee published its pre-budget inquiry report on 3 November, ahead of the planned Scottish budget on 15 December.

Amid concerns around the prospect of further income tax divergence that could have resulted from September’s UK mini-budget, the report notes comments by CIOT that there is a lack of evidence thus far of sustained behavioural change as a result of existing differentials. However, it acknowledges concerns that the potential still remains for tax differentials to deter investment.

The committee also acknowledges comments made by CIOT and the David Hume Institute around the prospects for the reform of council tax, which the Scottish government has already acknowledged is unlikely in the current parliament.