David N. F. Bell

Canadian and Scottish Fiscal Federal Arrangements: Taxation and Welfare Spending

Canadian provinces have always had tax-raising powers although these were surrendered for some years during and after the Second World War. Devolution in the United Kingdom did not initially include substantive taxation powers; rather there was a block grant from the centre. Tax powers have since been given to Scotland, with Wales due to follow; the main elements are income tax and an assigned share of Value Added Tax. Northern Ireland has been given control of corporation tax to allow it to compete with the low rates in the Republic of Ireland.