The evolution of devolved taxation: Celtic Academies Alliance report

The Celtic Academies Alliance, of which the LSW is a member, has used its convening powers to bring together a panel of experts and representatives from the the devolved nations to produce a report on taxation and devolution.

The report, Unlocking fiscal autonomy: The evolution of devolved taxation, emerged from a Celtic Academies Alliance taxation conference in November 2022 and a further roundtable, with the involvement of Professor Gerald Holtham FLSW. It explores the taxation powers available to the UK’s devolved administrations and how those powers are used.

The report’s wide-ranging exploration of the theme noted that, from a Welsh angle, income and excise taxes in Wales were unlikely to generate the same result as in other devolved nations. In broad terms, the report concluded that ‘all three administrations remain dependent on block grant (‘Barnett consequentials’) to fund a proportion of the services they run. Block grant adjustments are both highly technical and controversial.’

“This is an interesting and useful report,” said Olivia Harrison , the LSW’s Chief Executive. “I am especially pleased that the CAA continues to deliver in terms of policy contributions, bringing an important perspective from the devolved nations to policy discussions.”

Read the full report here.

The evidence below reflects the discussion and views of the roundtable attendees.