Murphy welcomes Fiscal Commission recommendation to increase fiscal powers

Date published: 22 March 2022

The Fiscal Commission was established last March by Minister Murphy to examine the case for additional taxation powers. During the meeting, Fiscal Commission Chair, Paul Johnson, provided an insight into the key recommendations that will be set out in their report which is due to be published in May.

Mr Johnson indicated that the Fiscal Commission final report will recommend that Income Tax should be devolved here on a ‘partial’ basis as well as the Apprenticeship Levy. The Minister was also informed the report will recommend full devolution of Stamp Duty Land Tax, Air Passenger Duty and Landfill Tax and a local revenue authority established to administer them.

Speaking following the meeting, Minister Murphy said: “I want to place on record my thanks to the Fiscal Commission for the substantive work they’ve undertaken and the rigorous evidence base they have provided for an incoming Executive to consider additional powers.

“Increasing our fiscal powers would put more control in local hands, allowing us to set taxes in line with the needs of society and businesses here, and would give us further options for funding public services.”

The Fiscal Commission report will also state that an Executive might wish to give consideration in the longer term to seeking devolution of Excise Duties for Fuel, Alcohol and Tobacco.

The Minister continued: “If we are to realise the benefits of devolution it is important that the appropriate financial and administrative arrangements are in place. Getting the practicalities right is vital if we are to take full advantage of more taxation powers and I’m glad that the Commission will consider these practicalities in more detail.

“I look forward to seeing the Commission’s final report which will be made available to the Department and Ministerial colleagues when it is published in May. At that point the report can be comprehensively considered and taken forward.”