Full fiscal autonomy for Scotland and Wales

Full fiscal autonomy (FFA) – also known as devolution max, devo-max, or fiscal federalism – is a proposed extension of the devolved powers of the Scottish and Welsh Parliaments over public finance. The term has come to describe a proposed arrangement whereby rather than receiving a block grant from HM Treasury at Westminster as at present, the Scottish Parliament and Senedd would receive all taxation collected in Scotland or Wales; the Scottish and Welsh Governments would reimburse the UK government for Scotland or Wales's share of UK-wide programs, mainly defence and foreign relations. Scottish/Welsh fiscal autonomy – stopping short of full political independence – is usually promoted by advocates of a federal United Kingdom. It has also been proposed by the Scottish National Party, currently the governing party in Scotland, as a potential third option in a future independence referendum.