Economist to lead commission on giving Stormont more tax powers

Paul Johnson, director of the Institute for Fiscal Studies (IFS), will chair the Fiscal Commission.

Stormont Finance Minister Conor Murphy said it represented a real step forward for the public finances.

He added: “There have already been comprehensive examinations of the fiscal powers of the assemblies in Scotland and Wales.

“The Fiscal Commission will provide a similar review here.”

He is also establishing an oversight Fiscal Council.

The minister said: “Putting the Fiscal Council in place will bring greater transparency and independent scrutiny to the Executive’s finances.

“It will be a stand-alone and permanent body, focusing initially on the Executive’s draft 2021-2022 budget.”

The Fiscal Council will be chaired by Sir Robert Chote, who brings a wealth of experience to the post.

He chaired the Office of Budget Responsibility for the last decade and is chairman of the external advisory group of the Irish Parliamentary Budget Office.

Ulster Unionist leader Steve Aiken said: “The need to critically and independently examine our budget process, how our departments allocate funding and, above all, to bring clarity to how our Executive manages our multibillion-pound budget has never been greater.

“We need to see the Fiscal Council put on a statutory basis as soon as possible. I am committed to trying to secure this in this mandate.”

The Stormont finance committee chairman added: “The question as to whether Northern Ireland is ready yet to set further tax-raising powers, without first putting and then demonstrating it can put its house in order is a moot one; the role of a Fiscal Commission will require considerable scrutiny.”