Letter: Scotland Bill offers no path to recovery

Yet it is extraordinary that my criticism of Mr McMillan's attack on the Scottish Government for "expending energy and taxpayers' money on a National Conversation principally about Scotland seceding from the United Kingdom…" is interpreted by Mr Jamieson as being politically motivated.

As I have made clear from the start of this "pantomime", my only motivation is that we have a proper and full debate on the extent to which fiscal powers should be devolved to the Scottish Parliament before the Scotland Bill is enacted. Why would anyone, irrespective of political leanings or other beliefs and understandings, object to that?

My own view that the Bill, as it stands, will not deliver the fiscal tools required to give Scotland the best chance of financial recovery and prosperity is not borne out of political ideology but of economic necessity.

Opponents are quite wrong in their assertion that I believe greater fiscal powers are a "silver bullet" which will solve all Scotland's problems. Far from it; I have repeatedly pointed out that how we use any future powers, and the ones we already have, is crucial to fostering economic growth and improved public services.

That is why Reform Scotland has published a series of reports looking at, among other things, the specifics of how we improve our transport and digital infrastructure, our main public services as well as the fiscal framework in Scotland.

There is nothing inconsistent in arguing that we should use the powers we have to best effect, while also calling for further power, and particularly fiscal power, to be devolved.

It is part of a fundamental decentralisation of power in which power is exercised as close to people as possible. The experience in other countries shows this makes government more responsive to people and can lead to enhanced growth and better public services.

Ben Thomson

Reform Scotland

North St David Street

Edinburgh

Bill Jamieson, as does the CBI's Iain McMillan, questions the link between the extent of fiscal autonomy and improved economic performance.

The evidence on this, however, already exists. Six cross-country data studies covering 91 countries over three decades, as well as nine single country studies indicate that in high to middle-income countries increased fiscal devolution (share of government spending by regional authorities in total government spending in that region) leads to increased growth rates. Subsequent studies, by Thiessen, Thornton and Imi, again reinforce this result.

In the US and Germany, for example, we find that even a miniscule 1 per cent increase in fiscal devolution generates an addition of between 0.16 per cent and 0.32 per cent to growth rates.In a Scottish context, taking a mid-estimate of 0.25 per cent would see a 1 per cent increase in fiscal devolution might be expected to raise GDP by 1.3 per cent after five years above what would otherwise have been the case.

Fiscal autonomy will improve Scotland's economic growth performance as it will allow decisions to be tailored closer to the needs of the economy as well as providing an incentive to maximise economic growth.

The onus is now on those such as Mr McMillan to provide evidence that no link exists between greater fiscal autonomy and improved economic performance.

Alex Orr

Leamington Terrace

Edinburgh

It's encouraging to see a two-sided "debate" taking place regarding Scotland's constitutional future on your letters pages.

Before now we had the largely unnoticed online National Conversation, inhabited mainly by cybernats, while at the same time, the behind-closed-doors Calman Commission, a cabal of hand-picked, seemingly stick-in-the-mud unionists.

I think it's fair to say Scotland's success or failure as a fiscally autonomous nation would largely depend on the tax and spend decisions taken by its first set of elected politicians.

An SNP or Scottish Labour administration with its hands on a full set of fiscal golf clubs would presumably attempt to continue the Gordon Brown model of creeping up taxation while spending like there's no tomorrow. Too scary a prospect for some, I would suggest.

What's missing is a mainstream right-of-centre Scottish party advocating a much smaller state with the ambition of lowering taxation.

It's this "Hong Kong"-type economic model (with an oil wealth fund to be spent only on encouraging diverse inward investment) that I, and dare I guess even Iain McMillan, may put their "X" against at the ballot box.

David Flett

Cooperage Quay

Stirling