Title

Scotland's devolved government would have absolute control over one-third of the country's budget under plans floated this week. The Calman Commission published its final report on devolution on 15 June, calling on Westminster's Treasury to cut 10p from standard and upper rates of income tax in Scotland. The commission, chaired by former chief medical officer, Sir Kenneth Calman, said MSPs should be given limited powers to decide how to raise the ensuing cash shortfall. Sir Kenneth said: ‘Our radical and innovative proposals to introduce a new Scottish rate of income tax will significantly strengthen the accountability of the Scottish Parliament and enable it to serve the people of Scotland better.' The commission, set up by Holyrood's three unionist parties in 2007, also recommended cutting Westminster's £32bn block grant to Scotland. Instead, MSPs should also be given control over stamp duty, landfill tax and air passenger duties. Most of the 24 recommendations within the report are intended to increase Scotland's control over its own finances, although others would see powers to run Scottish elections also devolved away from Westminster. But the commission, which does not have the backing of the Scottish Nationalist Party Government, barely touched on the thorny issue of North Sea oil and gas revenues. Scottish Labour leader, Iain Gray, described the report as a ‘bold and progressive' endorsement of devolution, 10 years on. A steering group made up of Scottish Labour, Liberal Democrat and Conservatives has been set up to take forward the findings. But the immediate scope for reform is limited. The SNP said it was ‘pressing ahead' with its own constitutional review, the National Conversation. Its leaders dismissed the commission because it did not consider full independence, or full control over Scotland's finances.

Title

FINANCE

Scots may get control over a third of budget

SUBSCRIBE TO CONTINUE READING