Two main taxation topics from the SNP conference.  Not supprisingly North sea oil and gas taxation was one.  One reason for this are the recent announcements that over half of the North sea and oil gas reserves remain.  That alone ensures that this issue will play a major part in the independence referendum.  The House of Commons Energy and Climate Change select committee has also this week criticised the UK Government’s recent “£10bn raid on North Sea oil profits”.

The other taxation issue that received a lot of coverage was the independent referendum and the number of options given.  The main question will be a yes or no to independence.  It is though a possible second question that has ignited so much debate.  A possible second question is likely to be a yes or no to greater fiscal and tax powers, but short of independence, for the Scottish Parliament.  How “short” is the tricky part.  There are a lot of options between the Scotland Bill proposals and full fiscal autonomy.

The press have termed this option “devo max”.  As one of the authors of Reform Scotland’s “fiscal power” papers I can confirm that one of the hardest issues is trying to find a suitable title.  Other terms commonly used are: fiscal responsibility, “home rule” and fiscal autonomy.  It will be interesting to see this debate develop.  Lots of questions.  Some of these include:

1. what is “devo max”?

2. who is going to define it?

3. who is going to campaign for it?

4. would the UK Government abide by a vote in favour of “devo max” but not independence?

5. what are the estimated costs and timescales?

Now to Europe and the latest agreement by the Eurozone countries.  One likely outcome of this crisis is that the  Eurozone countries will begin the process to more closely align their tax and fiscal policies.  Most commentators now seem to be saying that if you have a common currency you also need similar tax and fiscal regimes.  How “similar” is going to cause a lot of debate.  The debate has of course already started.  I have blogged previously on how hard the Irish government are fighting to retain its low rate of corporation tax.   It is not difficult to see the similarities with the Scottish independence debate as the  Scottish Government’s prefernce is to retain Sterling in the event of independence.

The debate over whether to retain the 50p rate of income tax was reignited this week when Paul Walsh, chief executive of Diageo, said that: “the 50p rate threatened to cause long term damage to Britain’s competitive edge”.  Paul Walsh’s comments contrast with those of Sir Stuart Rose, the former head of Marks and Spencer’s, who has supported the 50p rate.   George Osborne has of course commissioned a study on the revenues being received from the 50p rate.  That said, the debate is much wider than just the question of how much revenue is being raised.  The debate is just as much about the perceived fairness of the UK’s tax system.  It was ever thus.

Now to the so called “Retail tax levy”.  The Scottish Retail Commission claim that the proposed levy on major supermarkets selling alcohol and cigarettes breaches the Scottish Government’s own business rules by not carrying out an impact study on any such change.  The Scottish Government responded that as the levy only affects 0.1% of retail turnover the cost of a Business and Regulatory Impact Assessment would be disproportionate.  This debate is going to run and run I suspect.

Now to Aberdeen and the news that the first phase of work to improve Aberdeen city centre has begun.  More than two thirds of firms in the area voted in favour of a Business Improvement District earlier this year.  The companies agreed to pay into a fund with the aim of raising more than £3m for work to help attract more visitors.  The first phase of work includes cleaning guttering and building facades to help improve the city centre in the run-up to Christmas.

Have a good weekend.