By Richard Johnstone | 2 June 2014
The Scottish Parliament should be given full control over income tax if there is a no vote in September’s independence referendum, the Conservatives have said today.
Publishing Lord Strathclyde’s report into the future of devolution, the party’s Scottish leader Ruth Davidson said control of rates and bands would enhance devolution. However, the report concluded the level of the tax-free personal allowance should remain reserved to Westminster, and that National Insurance should not be devolved.
The Commission on the Future Governance of Scotland, whose members included former Scottish Parliament presiding officer Alex Fergusson and ex-party leader Baroness Annabel Goldie, also said a share of Scottish VAT receipts could be assigned to Edinburgh. In addition, current barriers that stop Holyrood supplementing UK benefits from its budgets should be removed.
Where a particular cash benefit is closely related to a devolved policy area, there is a case for Scotland having more control over its funding, the report concluded. This means devolution of Housing Benefit and Attendance Allowance should also be considered.
As these changes would represent a major transfer of powers within the UK, the commission said a committee representing all the nation’s parliaments should be formed to improve relationships between them.
Davidson said the recommendations represented a ‘radical plan’ to enhance the powers of the Scottish Parliament.
‘After 15 years of devolution, it is now time for a mature Parliament that is more accountable for the cash it spends.
‘This is not some kind of consolation prize for the [Scottish National Party] if Scotland rejects their separatist agenda. It is about modern Conservative principles of accountability, responsibility and doing the right thing for the Scottish people.
‘For the first time, MSPs will have to consider where the money they spend comes from – the hard-pressed Scottish taxpayer.’
The change would give Holyrood and the Scottish Government a direct stake in growing the Scottish economy, she added.
‘If more people are in work and more goods are sold in Scotland, this will generate greater tax revenues returning directly to the Scottish Government.
‘People across Scotland can now see that a ‘No’ vote in September will allow devolution to develop, while the SNP’s plans kill devolution stone dead.’
The plans are the latest set of reforms to be proposed by unionist parties ahead of the independence vote on September 18. Both Labour and the Liberal Democrats have already set out plans to boost the powers of the Scottish Parliament if there is a no vote.
However, responding to the report, SNP MSP Annabelle Ewing said independence would give Scotland the powers it needs to build a fairer society and stronger economy.
‘There isn't a “more devolved powers” option on the ballot paper – the Tories point-blank refused to include one – which is why Scotland needs to vote Yes to move forward. In 1979, the Tories said vote No for better devolution – and all we got was Margaret Thatcher and 18 years of Tory governments that Scotland rejected.’
