Scotland tax powers cost £8m

SCOTLAND’S USE OF its new tax powers could cost millions more than originally estimated by Whitehall.

Whitehall’s impact assessment, earlier this year, estimated £45m to set up the new powers for the Scottish Parliament which included an annual £4.2m operating cost. The original estimate did not take into account Holyrood’s ability to vary landfill tax and stamp duty which could add a further £8m to initial expenses, The Herald Scotland reports.

Last night, an aide to first minister Alex Salmond said it was surprising the £45m set-up and £4.2m annual running costs did not cover stamp duty or landfill tax.

He added that the small print in the bill, giving Scotland these new powers, carries a “huge price tag” according to the publication.

The Scotland Office said the set-up costs for the new devolved taxes were “relatively minor” when compared to the £4bn the UK system and the £400m the Irish system cost each year.


(Image © Scottish Parliamentary Corporate Body – 2010)

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