Committee (4th Day)

Part of Scotland Bill – in the House of Lords at 5:00 pm on 15th March 2012.

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Photo of Lord Sassoon Lord Sassoon The Commercial Secretary to the Treasury 5:00 pm, 15th March 2012

The noble Lord has explained the construct absolutely correctly, so I have no problem with that at all. However, if the UK Government decide to raise personal allowances to take more people out of tax, that will flow through to a reduction in the receipts to the Scottish Government under the construct that he has described. The UK will compensate the Scottish budget through the block grant for such a reduction of the tax base for Scotland, based on forecasts by the independent Office for Budget Responsibility.