No shortage of matters to blog about this week.

I think I will start with Edinburgh and in particular the City of Edinburgh Council.  Last week a “hotel bed” tax was proposed by Jenny Dawe leader of the Council.  This idea has been recycled a number of times over the last few years.  This week she proposed a voluntary “festival ticket” tax.  Clearly the Council are turning their minds to how they might meet any future funding shortfall.  Not yet clear if this is just kite flying by Councillor Dawe or whether there is serious support for one or both of these ideas.  I do though like the fact that a local politician is willing to enter into this sort of debate.

Moving on to the Scottish Parliament and John Swinney’s latest Spending Review.  Business rates have dominated the coverage of the Spending Review.  There has been a public debate. For debate read “slanging match”, between the Scottish Government and the “Centre for Public Policy and the Regions” over how much business rates revenue is going to increase over the next few years and also what the causes of this increase will be.    This debate has surprisingly overshadowed the proposal for a new “public health levy” on the business rates of large alcohol and tobacco retailers.

Interested to see that Ken Macintosh, one of candidates for the leadership of the Scottish Labour party – and yes I can name the other candidates as well – says if elected and if he wins the next Scottish General Election he would cut the Scottish rate of income tax.  Not that we have a Scottish rate of income tax yet and it is not even certain that the Scottish Government will accept the income tax proposals contained in the Scotland Bill.  Nonetheless this is a welcome sign that that the Labour party in Scotland are joining the fiscal powers debate.

More evidence has been given this week on the Scotland Bill.  As noted by a number of commentators this week we are in the position that very few people seem happy with the fiscal and tax provisions as proposed.  Numerous questions remain over the income tax proposals.  Some minor taxes recommended for devolving by the Calman Commission have not even been included in the Bill.  One of these, Air Passenger Duty, is to be devolved to Northern Ireland.  A pattern does appear to be forming here.  Borrowing powers, corporation tax and now Air Passenger Duty.

The UK Government is unhappy with the Scottish Government.  The Scottish Government is unhappy with the UK Government and in particular the UK Treasury.  No side seems to be acknowledging how complicated all of this is.   This has “it is going to end in tears” written all over it.  I still don’t understand why so much energy is being wasted on income tax and corporation tax when there are numerous other taxes which would be much easier to devolve.  These taxes even if a majority were devolved would not provide as much revenue as income tax but would provide a greater number and a more wide-ranging set of economic levers for the Scottish Parliament.  Still I am sure our politicians know what they are doing.

One suggestion.  There are going to be two new Scottish taxes: Stamp Duty Land Tax and aggregates levy.  Can I suggest that the Scottish Government involves the Scottish Law Commission in the drafting of the legislation of these taxes.  Two reasons.  Firstly the expertise, experience and reputation of this body is second to none.  In addition, as more taxes are likely to be devolved, this will ensure that we start the job of creating an expert group going forward.  The recent Scottish Government paper on Corporation Tax shows just how much work requires to be done before such taxes can be devolved.

Now to Liverpool and the Labour party conference this week.  Ed Balls renewed his call for a cut in VAT and in particular a reduction to 5% for VAT on building repairs and renovations to residential property.   I have previously blogged on the Scottish campaign for a 5% VAT rate for repairs and renovations and in particular on the fact that the Isle of Man has already negotiated such a reduction with the UK Treasury.

Let’s not forget Europe in these troubled times.  The European Commission has now formally called for a new tax on financial transactions amongst EU members.  Note EU members not Euro members.  The UK Government has made its opposition clear to this proposal and in particular on the ground that it would primarily be a “London tax”.  Not yet seen or heard what the Scottish Government think of this proposal.

I wonder if the European Commission’s proposal will be mentioned at the UK Conservative party conference.