Former IMF Director gives evidence on the economics of devolution
27 October 2015
The House of Lords Economic Affairs Committee took evidence from Carlo Cottarelli, an expert on the economics of devolution and former Director of Fiscal Affairs at the International Monetary Fund (IMF). The session forms part of the Committee's inquiry into the devolution of public finances in the UK.
- Parliament TV: The devolution of public finances in the United Kingdom
- Inquiry: The devolution of public finances in the United Kingdom
- Select Committee on Economic Affairs
The evidence session started at 11.35am on Tuesday 27 October in Committee Room 2, Palace of Westminster.
- Carlo Cottarelli, former Director, Fiscal Affairs Department, International Monetary Fund (IMF)
Areas the Committee questioned Mr Cottarelli on included:
- What are the best taxes to devolve to sub-national governments and why?
- Would it be sensible for the Scottish Parliament to retain all income tax raised in Scotland? Are there other examples of sub-national governments retaining all income tax?
- What principles should govern borrowing by sub-national governments?
- How successful have 'no bailout' rules between national and sub-national governments been? Should the UK legislate for such a rule in Scotland?
- Are there any examples of countries that have undergone a transition as proposed for the UK of moving from a centralised state to a more federal structure?