Tories would delay Scottish powers

11 Mar 10
A Conservative government would delay implementation of plans to increase the finance powers of the Scottish Parliament until a full analysis had been carried out by the UK Treasury, Public Finance has been told.
By David Scott

11 March 2010

A Conservative government would delay implementation of plans to increase the finance powers of the Scottish Parliament until a full analysis had been carried out by the UK Treasury, Public Finance has been told.

It has emerged that it could be up to five years before the Tories would have legislation in place. This timescale is likely to renew controversy over how long it would take the party to act on recommendations by Sir Kenneth Calman’s commission on devolution.

In an interview with PF, shadow Scottish secretary David Mundell said his party intended to have legislation in place in time for the 2015 Holyrood elections.

He stressed that the party supported the Parliament being given additional powers on taxation and borrowing.

But he said: ‘[Tory leader] David Cameron felt strongly that it was important that we had the benefit of the Treasury’s full expertise to examine the proposals ahead of implementing them and that we couldn’t just simply rely on the [Labour] government’s white paper. I think that’s perfectly reasonable for an incoming government.

‘[The proposals] are significant for Scotland and they’re significant for the rest of the UK’s tax system so we want to get them right.’

Mundell added: ‘What we’re committed to is bringing forward our own white paper by the time of the Scottish Parliament elections so that when people go to vote… in 2011 they will know what the Conservative government’s proposals are.

‘We’re very clear on that and we want to have legislation in place on the Calman process for the 2015 Scottish Parliament elections.’

Labour is committed to introducing legislation giving Scotland the power to raise tax in the next Parliament ‘as a matter of priority’.

A spokesman for First Minister Alex Salmond said it would be ‘ludicrous’ if nothing were to happen for the entire duration of the next Westminster Parliament.

He added: ‘Labour’s Jim Murphy [Scottish secretary] watered Calman down further in his white paper and now David Mundell is indicating that the Tories would water them down even more – and nothing would happen for the entire duration of the next Westminster Parliament, which is farcical.’

Labour intends to give Scotland control over a 10p tax rate. The Westminster block grant would be reduced accordingly and Holyrood would be able to vary the 10p rate upwards or downwards.

Murphy told PF that Labour was implementing the Calman plan and that the 10p tax rate was worth about £4bn.  He said the Calman proposals ‘complete the devolution jigsaw’ by adding the ‘missing piece, which is financial accountability’.


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