Scotland to get 10p-in-£ tax powers - Press & Journal
Scotland to get 10p-in-£ tax powers
but Westminster government’s plans for greater devolution come with a £10bn sting in the tail
Published: 24/11/2009
The UK Government will commit tomorrow to giving Scottish ministers the power to raise or lower income tax by up to 10p in the pound.
The sting in the tail will be a cut about £10billion from the block grant to Scotland.
Details of the proposal and other plans to devolve more powers to Edinburgh will be spelled out in a White Paper at Westminster.
It is the UK Government’s response to the proposals drawn up by the Calman Commission with support from the Labour, Liberal Democrat and Tory parties.
Scotland Secretary Jim Murphy claimed last night the move showed “just how seriously this government is taking further devolution”.
But Highland SNP MSP David Thompson, who is campaigning for the drink-drive limit to be lowered north of the border, said: “The delay in transferring vital powers is unacceptable and looks increasingly like deeply cynical electioneering instead of serious efforts to protect people’s lives,” he added.
Lib Dem Scottish affairs spokesman Alistair Carmichael agreed the delay was unnecessary.
“My view is that the Calman Commission proposals are a detailed piece of work and we could move straight to a Bill,” he said.
“If the government was serious about introducing this, that is exactly what it would do.”
The key proposal is to lower the UK basic rate of income tax in Scotland by 10p in the pound and reduce Westminster’s grant to the Scottish government by similar amount – about a third of its overall budget. The Scottish Parliament would have the power to replace the lost grant by imposing a Scottish rate of 10p – in effect keeping the existing 20p rate – or by reducing spending and lowering the Scottish rate, or increasing spending and raising the rate by up to 10p more.
If the Scottish Government decided to keep the overall level of income tax in line with the rest of the UK, the Scottish budget would remain unchanged.
Labour said this would end demands from the SNP-controlled Scottish Government for more resources without the consequences of having to increase tax to pay for it.
The SNP position is that all taxes in Scotland should be controlled by the Scottish Parliament, and a sum remitted to Westminster for UK services such as defence, until separation.
