03.03.2011
The Scottish Parliament should have the power to decide its own rate of income tax, raise up to £5 billion to fund major infrastructure projects by borrowing or issuing bonds, and introduce new taxes, according to a report published by the Scotland Bill Committee.
Committee convener Wendy Alexander MSP believes that the Scotland Bill represents the most significant transfer of financial powers to Scotland from London since the creation of the United Kingdom. The 239-page report suggests a series of amendments to improve the legislation.
Speaking about the recommendations, Ms Alexander said:
“This report is about delivering a much stronger financial settlement for Scotland and the next phase of devolution.
“I am proud of the work that my Committee has done to improve the Scotland Bill. What we are now recommending is ‘Calman plus’.
“Our report recommends a series of amendments that would give the Scottish Parliament new powers to raise up to £5 billion for major infrastructure projects by borrowing or issuing bonds - double the amount proposed by the UK Government.
“I believe that these powers could help the next Scottish Government pay for the new Forth Road Bridge or fund a major housing programme.
“The Committee also makes a series of recommendations to strengthen the powers of the Scottish Parliament over a whole range of areas including Council Tax Benefit, the Crown Estate, and Gaelic Broadcasting.
“It is more than ten years since the Scottish Parliament was created. We are now taking the next steps on a journey with new financial powers and responsibilities, which will provide ministers with the tools to invest in our future and make life better for people in Scotland.”
Background and notes to editors
1. The Bill’s financial provisions provide the right to set a new Scottish rate of income tax, devolve other minor taxes and give borrowing powers.
2. The Parliament’s future basket of taxes – income tax, non-domestic rates, council tax, Stamp Duty and Landfill Tax will amount to almost a third of devolved spending
3. Two more taxes are recommended for devolution – Aggregate Levy and Air Passenger Duty – and others can follow by mutual agreement.
4. Over 100 written submissions were received by the committee. 11 formal meetings were held between December 2010 and March 2011. Informal events were held with the Scottish business community.
5. Not all the Bill’s recommendations received unanimous support and the Minority View is contained in Annex A of the report.
6. A debate based on the Committee’s recommendations will be held in the Scottish Parliament next Thursday, March 10. The Bill will then proceed at Westminster.
7. A further Legislative Consent Motion will be required during the next session of the Scottish Parliament to consider the amended bill before it receives Royal Assent.
Legislative Consent Memorandums are lodged in the Scottish Parliament by the Scottish Government (or other parties). They relate to Bills under consideration in Westminster which contain “relevant provisions”. These provisions could: change the law on a “devolved matter” (an area of policy which Westminster devolved to the Scottish Parliament in the Scotland Act 1998); or alter the “legislative competence” of the Scottish Parliament (its powers to make laws) or the “executive competence” of Scottish Ministers (their powers to govern).
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Stephen Imrie: 0131 348 5207 RNID TypeTalk calls welcome
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