Scottish Devolution: More financial independence

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Tax
Written by Gary Howes   
Monday, 15 June 2009

New report presented to PM recommends greater financial responsibility for the Scottish Parliament.

 

The Calman Commission on Scottish Devolution has handed the Prime Minister a new report on Scottish devolution that recommends greater financial responsibility for the Scottish Parliament.

The Commission on Scottish Devolution, chaired by Sir Kenneth Calman, released its final report this morning.

It concludes that a new financial model should give the Scottish Parliament more responsibility for decisions on tax and spending in Scotland.

Gordon Brown said the Commission’s analysis of Scotland’s place in the UK was “serious and weighty”.

“I agree that the way forward for Scotland is stronger devolution within a stronger Union - 21st century devolution for a 21st century Union delivering interdependence rather than independence.

Their proposals on finance are imaginative and bold -greater accountability for the Scottish Parliament within a well defined UK framework. They are also realistic in recommending phased implementation.”

However the SNP has said the report does not go far enough arguing for complete financial independence.

With regards to tax the commission proposed that the UK Treasury should deduct 10p from standard and upper rates of income tax in Scotland and give MSPs the power to decide how to raise cash.

Brown said the Commission’s recommendations would allow Scottish people to preserve Scotland’s distinctiveness, while still being part of the wider UK.

The Commission’s model would see the Scottish Parliament making decisions on the balance between taxes and public spending.

It also recommended that any change should be phased in, to manage the risks of instability in public finances.

In addition to financial considerations the commission also said the Scottish Parliament should control national speed limits, drink-driving laws and airguns legislation.

 

 
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