Scotland will be given more tax and borrowing powers

26 May 10
Scotland is to be given greater powers over tax and borrowing in the biggest shake-up of the devolution settlement since the Holyrood Parliament was established

By David Scott

26 May 2010

Scotland is to be given greater powers over tax and borrowing in the biggest shake-up of the devolution settlement since the Holyrood Parliament was established.

The Queen’s Speech on May 25 underlined the new UK government’s commitment to introduce legislation implementing recommendations from the final report of a commission on devolution headed by Sir Kenneth Calman.

A spokesman for Scottish Secretary Danny Alexander said: ‘There is a serious intention to get on with this. We’re moving faster than was previously envisaged but we are having engagement along the way to make sure we get a better package.’

A Scotland Bill is due to be introduced in the autumn. This will also give Scotland new powers over drink-driving, speed limits and air weapons.

There had been speculation that the plans to give Scotland control over a 10p rate of income tax might be put on ‘hold’ while discussions were held with the devolved Scottish Government and other interests.

First Minister and Scottish National Party leader Alex Salmond gave a cautious welcome to the decision to devolve extra powers.

But he claimed the Calman proposals on tax had been overtaken by the UK government’s plans to raise the income tax threshold to £10,000.

Scottish Labour leader Iain Gray said: ‘The Tory-Lib Dem government has said they will bring Calman forward but, as ever, the devil is in the detail.’

Scottish Tory leader Annabel Goldie called on all parties to work together to achieve the goal of improving the devolution settlement.

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