The decision made by the people of Scotland on 18th September was to say ‘No’ to having a referendum regarding an Independent Scotland.
During the campaigning for a ‘Better Together’ solution, David Cameron has promised to “honour in full” a pledge to transfer powers over tax to the Scottish parliament. He also said that England, Wales and Northern Ireland will be given greater powers to decide their own tax, spending and welfare issues.
It appears from Mr Cameron’s promised, that we are going to see almost total devolution of tax powers. However, within Westminster, there is no consensus between the three main parties at to the extent of the powers to be transferred. Clearly this makes for some interesting times ahead but, again, the lack of clarity created uncertainty and potentially very challenging for business in the UK.
Effectively, we could find two different tax systems operating in the UK, which would be complex to say the least. It has been reported that such a change would make Britain a radically different place, and possibly be the biggest governmental upheaval in modern times.
Elsewhere, it is reported that English regions and cities have used the devolution debate to call on the government to "loosen Whitehall's grip" on borrowing, council tax and business rates and give councils the right to increase local taxes.
At this time it is very much a case of ‘watch this space’ but I do predict that there will be lots of debate and agreement will be difficult to reach.