Scots revenue service ‘not ready for new tax powers’
SCOTLAND is not ready to introduce its first tax powers in more than 300 years as costs spiral, experts have warned.
A devastating Audit Scotland report says this could lead to a delay in payments being processed and a further increase in the cost of collection.
The cost of setting up Revenue Scotland has already risen to £4.3million, £1.1million more than planned.
The report also reveals that the devolution is ‘dependent on a single member of staff ’ in the Scottish Government. However, Finance Secretary John Swinney is confident Revenue Scotland is on track and will be operational by April, when the Scottish Government will
‘These findings are alarming’
introduce its own alternative to stamp duty, and a landfill tax.
Ministers point out that the Audit Scotland review was carried out in October and they are preparing for a huge amount of testing work to be done in January and February.
It comes weeks after the Smith Commission recommended the devolution of income tax, a far more substantial transfer of tax powers than those in the Scotland Act 2012.
Scottish Tory finance spokesman Gavin Brown said: ‘The findings in this report are alarming.
‘It seems there could be a situation where Revenue Scotland might have to resort to using paper in the absence of a competent IT system.’
The Tories are particularly incensed after Eleanor Emberson, head of Revenue Scotland, appeared at committee and told Mr Brown the IT project was ‘still on track’.
Scottish Labour finance spokesman Iain Gray said: ‘This report blows a hole i n any credibility the Scottish Government had left.’
Auditor General Caroline Gardner warned that ministers ‘must ensure staff and systems are fully in place’ to manage the extra responsibilities.
Mr Swinney said: ‘We are closely monitoring Revenue Scotland’s progress. I am confident we have robust plans in place to ensure smooth delivery of the service.
‘ It i s heartening to see this thorough planning acknowledged by Audit Scotland.’