Smith Commission

Evidence to Scottish Parliament by Dr Angus Armstrong, April 2015

The National Institute of Economic and Social Research (NIESR) continues to put public debt at the centre of its analysis on the constitutional options for devolving further powers within the UK. This was at the heart of our analysis of Scotland’s currency options. We are concerned that the Smith Commission, the Treasury and emerging proposals for ‘Full Fiscal Autonomy’ (FFA) or ‘Full Financial Responsibility’ underestimate the importance of Scotland’s borrowing capacity and the misalignment of incentives in the tiers of UK government.