3 March 2011
The financial powers devolved to Holyrood in the Scotland Bill should be increased, according to MSPs.
The Scotland Bill, published in November, takes forward the recommendations of Sir Kenneth Calman’s commission on Scottish devolution. It will give the Scottish Parliament power to set income tax rates as well the ability to borrow.
The Scottish Parliament committee convened to scrutinise the Bill issued its report today. It concluded that MSPs should have greater control over income tax bands and a power to borrow up to £5bn for capital projects – more than double the £2.2bn limit set in the Bill.
However, the all-party committee was divided on a number of issues, with its two Scottish National Party members dissenting from the main conclusions on tax and arguing that Scotland should instead be given full fiscal responsibilities.
Committee convener Wendy Alexander, a Labour MSP, said the Scotland Bill represented the most significant transfer of financial powers to Scotland from London since the creation of the United Kingdom.
She added: ‘This report is about delivering a much stronger financial settlement for Scotland and the next phase of devolution… What we are recommending is “Calman plus”.’
The committee’s other recommendations included giving Holyrood powers to raise money by issuing bonds and giving Scottish ministers complete discretion over spending without having to first seek agreement from the UK Treasury. It also said Revenue & Customs should be legally accountable to both the Scottish and Westminster parliaments.
The MSPs called for two further taxes to be devolved – air passenger duty and aggregate tax, which is levied on exports of rock, sand and gravel.
A debate on the committee’s recommendations will be held in the Scottish Parliament on March 10 prior to the bill proceeding to Westminster.
Brian Adam, an SNP member of the committee, welcomed plans to extend the proposed borrowing powers but said the Bill’s taxation powers were inadequate and that full financial powers should be devolved.
