Party says a Scottish OBR independent of government would increase transparency, reports David Thomson from the party conference in Edinburgh
THE Scottish Liberal Democrats have passed a motion calling for the creation of a Scottish Office for Budget Responsibility (OBR) at their spring conference in Edinburgh.
Delegates attending the conference called on the Scottish Government to establish a Scottish office that would have a similar remit to the UK Office for Budget Responsibility
Scottish Liberal Democrat Liam McArthur MSP said: “I think that everyone accepts that with the extension of the powers of the Scottish Parliament about tax what we do need is more of a robust mechanism for independent advice, analysis, and predictions.
“I think that The Office for Budget Responsibility at a UK level has provided that over recent times, independent of Government and that is the critical aspect.”
McArthur added: “I think now with the extensions of powers to the Scottish Parliament and the Scottish Government it is incumbent upon us to establish a similar mechanism to give the public confidence that the predictions and projections are made are independent of government.
“The robust evidence leads and they will provide the basis for better decision making, by ministers and by the parliament on the economy.”
“I think now with the extensions of powers to the Scottish Parliament and the Scottish Government it is incumbent upon us to establish a similar mechanism to give the public confidence that the predictions and projections that are made are independent of government.” Liam McArthur MSP
In accordance with the motion, the Scottish Lib Dems believe the move would make the Scottish Government more transparent and accountable as part of a federal UK.
It was also noted that all successful federal nation states maintain a pan-national fiscal balancing, but despite this the Scottish Government continues to support a policy of seeking full fiscal autonomy.
The Office of Budget Responsibility has responded to say that they it is unable to comment on possible party policy as it is independent of the UK Government.
As part of the recent agreement on the fiscal framework between both the UK and Scottish Governments , the Scottish Government will present the Scottish Fiscal Commission Bill to the Scottish Parliament. The Commission’s role is to prepare independent forecasts in areas such as welfare spending, fully devolved taxes – including income tax – and onshore GDP in Scotland.
When the Commission commences is still to be discussed as it is part of the legislation currently going through the Scottish Parliament. There was some concern among delegates who attended the conference that the Commission in its scope and remit is currently inadequate for meeting fiscal analysis and accountability requirement.
In accordance with the motion, the Scottish Lib Dems believe the move would make the Scottish Government more transparent and accountable as part of a federal UK.
Scottish Liberal Democrat representative John Ferry, who move the motion this morning, said that the “current Scottish Fiscal Commission is being put on a statutory basis [with] a remit for Scottish-only projections.
“Critically, that is the difference from the UK OBR that produces independent projections.””
A Scottish Government spokesman said: “The Scottish Fiscal Commission already provides independent scrutiny of Scottish Government revenues forecasts, and is already an established part of the Finance Budget Bill and parliamentary process.
“The legislation to put this body on a statutory basis is also currently being considered by the Scottish Parliament. Part of the fiscal framework deal agreed with the UK Government requires the Scottish Fiscal Commission to prepare forecasts of tax revenues and GDP.
“The Scottish Government will bring forward amendments to the Scottish Fiscal Commission Bill to reflect this wider role.”
Picture courtesy of Ken Teegardin