25/11/2009

Powers Increase In Scottish Parliament

Greater powers are to be devolved to the Scottish Parliament, it has been announced.

Plans are afoot to transfer greater taxation and legislative responsibilities from Westminster to the Holyrood government.

However, it is unlikely the new political muscle will be handed over before the next general election.

The shake-up, which will allow Scotland to set its own laws on airgun ownership, drink-drive limits and speeding restrictions, has been described as "radical" by the Secretary of State.

Jim Murphy's proposals follow on from last week's Queen's Speech, which outlined commitment to findings produced in the Calman Commission review of devolution.

Under the proposals, central government in London would cut Scottish income tax by 10p and reduced the devolved administration's block grant accordingly.

Holyrood would then be left to make up the difference.

Scottish ministers would then be able to redirect this locally collected taxation into a separate budget.

They would also have the power to increase the 10p fixed amount.

Three other taxes - stamp duty, aggregates levy and landfill - would also be devolved, with a corresponding £500m cut in the block grant from Westminster.

The Scottish Secretary told Commons colleagues the proposals would strengthen Scotland's financial accountability.

Mr Murphy said: "Scotland has two parliaments - this parliament, which remains an important symbol of the UK and which continues to have vital daily relevance in Scotland, and the Scottish Parliament at Holyrood, which has firmly established itself over the last decade in Scottish hearts and minds."

On Monday, devolved ministers are expected to set out a White Paper on Scottish independence, to coincide with St Andrews Day.

(PR/BMcc)

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