Date lodged: 24 March 2017
To ask the Scottish Government what programmes it has established or plans to introduce to implement each of the additional financial powers being devolved under the Scotland Act 2016, and how much each programme will cost.
Answered by: Derek Mackay 13 April 2017
The implementation of the Scotland Act 2016 financial powers is being governed by a single programme board; the Fiscal Framework Implementation Board. Existing staff resources are allocated to this work and no additional costs are incurred.
The Scottish Government is meeting the costs incurred by the UK Government as a result of implementing the further income tax powers. HMRC and DWP have provided estimated lifetime implementation costs for Scottish Income Tax of £2.6million and £0.5million, respectively.
Implementation costs for VAT assignment are to be split equally between the UK and Scottish Governments. Total costs to date are £0.13million.
The introduction of the new Social Security powers is overseen by the Social Security Programme Board. Again staffing to support and membership of the Board is met by existing administration costs. The 2017-18 Budget includes a Scotland Act non-tax implementation budget line of £80 million in the Finance and Constitution portfolio which is intended to support activity around implementing and running the powers that are transferring under the Scotland Act 2016, which include social security. This funding was transferred to the Scottish Government by HM Treasury as part of the administration and implementation costs provision within the fiscal framework.