Luke Graham MP, the Member of Parliament for Ochil and South Perthshire, has slammed the SNP’s economic performance while in power at Holyrood over the last twelve years, following figures released which shows that the UK Government is covering a £737m shortfall in Scotland’s income tax receipts.
With Scotland’s economy growing more slowly than the rest of the United Kingdom, the Income Tax receipts in Scotland, which has been devolved to Holyrood, has left a significant shortfall in Scotland’s revenue and, therefore, funds to spend on frontline services.
The shortfall is being covered by a process called ‘Reconciliation’, a new process introduced as part of the new fiscal framework established by the Scotland Act 2016. in which the UK Government calculates an uplift in devolved funding to cover any shortfall caused by greater devolution of fiscal powers, and ensure all parts of the UK continue to benefit from the pooling and sharing on the United Kingdom.
Income Tax was devolved to Holyrood in the Scotland Act of 2016, the bill which delivered a raft of new powers to the Scottish Parliament after the referendum in 2014. However, Mr Graham, a former member of Public Accounts Committee in Westminster, criticised the SNP’s economic performance.
Commenting, Luke Graham MP said:
“The SNP scream for more and more powers yet when they receive them all we see is failure of delivery. This isn’t Brexit, it’s SNP arrogance, and their arrogance will directly impact upon the frontline services our constituents rely upon.
Income tax is dependent upon a thriving economy to produce increased tax receipts, yet under the SNP’s mismanagement of Scotland we see an business confidence and an economy lagging behind the rest of the UK, creating a fiscal shortfall in Scotland’s revenue generation.
I welcome central government stepping in to plug the gap to the tune of £737m. This is a prime example of the benefits of being the United Kingdom, showing real support and delivery verses the SNP who continue to obsess about endless referendums on separation.”