A CROSS-party group of MSPs says there needs to be a “cultural change” in the Treasury.
The Scottish Parliament’s Finance Committee report into the devolution of powers from Westminster to Holyrood, warns the Treasury can no longer act as the “sole decision maker” on fiscal matters.
Civil servants at the Treasury, it says, must be willing “to work with the devolved institutions in seeking agreement”.
Committee convener Kenneth Gibson said: “Our report makes clear that progress on these matters will only be made if the UK Government – the Treasury in particular – actively demonstrates a willingness to work with the Scottish Parliament and Government in seeking agreement on a revised fiscal framework.”
MSPs also argued for “meaningful consultation with both the UK and Scottish Parliaments” on the new fiscal arrangements, saying it was “simply not appropriate” for these to be decided by the two governments. Gibson said: “There needs to be an openness and transparency in intergovernmental discussions and there must be meaningful consultation with both the Scottish and UK Parliaments. This process must not simply be left to the Governments to agree.”
The relationship between the Scottish Government and the Treasury has been strained since the referendum campaign when civil servants were accused of working in cahoots with Better Together campaigners.
A report by the House of Commons Public Administration Select Committee warned that Treasury Permanent Secretary Sir Nicholas Macpherson had endangered the civil service’s neutrality by publishing his advice to Treasury ministers warning against a currency union with Scotland in February 2014.
In their report, the Finance Committee, made up of SNP, Labour, Tory and independent MSPs, say that the Treasury must show willingness and flexibility to work with Scotland.
The report says: “For fiscal devolution to work it is essential that the Scottish Government has some flexibility to pursue distinct fiscal policies consistent with the overall UK fiscal framework.
“While the Scottish Government is consulted on the operation of the Barnett formula, the Treasury has the sole decision-making role. The committee recommends that there needs to be a greater willingness within the Treasury to seek agreement with the devolved institutions on the methodology and operation of the funding model.”
“This will require cultural change both within the Treasury and at all levels of inter-governmental relations. There needs to be a culture of genuine respect between the various governments within the UK.”
A spokesperson for the Treasury said: “As the Prime Minister has said, the Scottish Parliament is going to have much more responsibility in terms of spending money under the Scotland Bill, which is currently going through Parliament. The Chancellor has already met with the Scottish Finance Minister to begin discussions on transferring spending and taxation powers.”
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