Swinney: ‘I cannot interfere with Fiscal Commission’

Scotland’s Finance secretary John Swinney has told a committee of MSPs that he will not interfere with the work of the new Fiscal Commission, after assuring them that he has “no control” over the “independent” body.

Mr Swinney, who is also deputy first minister for Scotland, came before members of the finance committee the day after the Scottish Government made public its plans for the coming year.

The Fiscial Commission will scrutinise new tax and borrowing powers heading to Holyrood from Westminster and will make economic forecasts to parliament.

Mr Swinney’s appearance before MSPs came as they began debating the government’s legislative programme which will feature eight bills, including:

Mr Swinney’s evidence session to the Holyrood committee focused on the Fiscal Commission which has been set up in the wake of the recommendations of the Smith Commission on more devolution for Scotland.

He said: “The fiscal commission has been set up on an independent basis and I have no control over it.

“The only influence I have had over this is who are the members of the fiscal commission.

“I believed it was important that we had to appoint people of very strong professional reputational capability and people of high integrity.”

Mr Swinney went on to say that those points were accepted across the parliament’s political spectrum.

He added: “So, we have a fiscal commission which is independent, I cannot direct it. It has people of great capability and integrity in its members and it has, as I have demonstrated practically already - it is not even in statute yet - and it has exercised a veto over my forecasts.

“I think that should give people confidence that we have a body that fulfils the key tests of being able to exercise independent judgement.”

Meanwhile, First Minister Nicola Sturgeon has hinted that she will keep Scottish income tax rates in line with the UK’S even after Holyrood is granted new fiscal controls next year, but only until more devolved tax powers allow her to specifically target high-earners.

The SNP leader said she wanted the extended Smith Commission powers – which would allow MSPs to introduce a higher rate for higher earners and give Holyrood full control over all income tax rates and bands – devolved “as quickly as possible”.

Ms Sturgeon has previously backed a 50 pence top rate and yesterday opened the way for eventually increasing taxation on higher-earning Scots, but said that the new tax-raising powers coming to Holyrood next year will not allow her party to make “progressive” changes to income tax rates without hitting lower earners as well.

But she promised that the Scottish Parliament over the next few years “will take more power over tax”.

She said that the “Calman” powers, which come into effect in April, mean any tax rises – or cuts – would have to be applied across all tax bands, which was at odds with the SNP’S previous approach in areas such as property tax.

“Next year we will get limited power over income tax that will not allow us to make changes on one band of income tax without also making the same changes on all bands of income tax”, she said. “So it’s a very limited power we will get next year which is why I want to see the additional powers come as quickly as possible.”

Ms Sturgeon said that her government will reveal its plans for income tax only after Chancellor George Osborne’s spending review in late November because its details will have knock-on effects for Scotland’s budget.