The Options for Devolution Finance: The Choices for the New Government

The debate about the financing of devolved government in Scotland, Wales and Northern Ireland has acquired a new vigour since 2007, with commissions and reviews taking place in Scotland, Wales and at Westminster. Although of considerable constitutional as well as political importance, the technical detail has obscured many of the wider issues involved. This paper surveys the options now open to the UK government, as it prepares its response to the Welsh Holtham Commission, a bill implementing the Calman Commission's recommendations for Scotland, and looks at ways of altering corporation tax in Northern Ireland. It examines six options that in principle are open to the UK government, and argues that the range of options open to the UK government are narrower than they often appear, and that pressure for it to act is such that it will no longer be possible to avoid far-reaching action.