Tuesday 16 June 2009

Some Thoughts on the Calman Commission Report



I've yet to finish ploughing through the details of the Calman Commission report, although I have formed an opinion of sorts, but I thought it would be helpful to some readers if I listed a few blogs and articles in the media which have posts relevant to the report.

More from the BBC
late addition Power and its Minions

I am sure there will be more contributions in the next few days.

13 comments:

Oldrightie said...

Not something many people will be reading. As for independence, nice idea but designed to make you a divisve issue to exploit EU federalism.
Governor rather than first minister?

CrazyDaisy said...

SR,

I just laugh at this incompetence and desperation by Unionists, that's all it was ever going to be and I doubt Brown will have the time to get this through Westmidden.

As for Smee - it's pure dead jealousy that your Blog is successful and he is as insignificant as this Unequal Union of Nations.

subrosa said...

Independence supporters have yet to debate the title which will be given to their head of government Oldrightie. Presently we support the Queen but once she goes things could change radically. I certainly don't see any royal worthy of my support in the next generation.

subrosa said...

Morning CD. Aye it's all joy for the unionists at the moment.

What's smee been up to? I haven't noticed.

subrosa said...

A smee's the commenter on the previous post who thinks Tony Blair is made of platinum? Gotcha.

CrazyDaisy said...

SR,

I relate to Wills and Harry perhaps it should skip a generation?

Met Charles - nice enough but wet,

Wonder what crisis will emerge when Liz dies?

CD

Anonymous said...

Aye, it appears that the unionist are now 'protecting' Scotland from it's own oil wealth.LOL,

The proposals effectively mean that it would be incumbent on every Scottish finance minister to levy a separate Scottish income tax and decide at which rate to level it — if less than 10p he would have less money to spend on services, if more he would have to answer to the voters for Scotland’s higher tax regime.

However, that hypothetical Scottish finance minister would not be able to vary the differential between the basic and top rates of tax, thus making it impossible for Scottish parliamentarians to hammer the higher earners without also hitting those paying the basic rate.

How do you square that creating a fairer society?

The Scottish Parliament has the power to vary taxes by 3p in the pound but in its first 10 years, no party has even suggested using it. The reason being is that it's a blunt tool when compared to the enterprise driven corporation and oil taxation systems.

By avoiding these issues completely, Calman has indeed 'shot the unionist goat' and made it plain the reasons for the 'economic union'.

Wait and see the next SNP campaingn move to retaining the 'social union' and reviewing the 'economic union'. - divide and conquer.

And whatever happened to Tory and Labour screams of horror at the taxman having to deal with different workers on different tax rates on different sides of the Border for Local Income Tax?

Let's see, potentially different tax rates north and south of the border doesn’t smack to me of aiding what is called the “economic union” between Scotland and England.

It'd be interested to hear from so called 'unionists' (or should that now be 'home rulers') how harmony between the two countries would be helped if the tax rates were different but welfare payments, including pensions, remained the same?

A definite fudge but another step in the right direction.

I wonder if the Unionist (oop Home Rulers) will now be supporting a referendum for these changes??

subrosa said...

CD Wills and Harry are just like two playboys to me. They have far less sense of responsibility than their grandmother.

Aye I do think there will be great changes once Queenie leaves the post.

subrosa said...

Wardog, the aim of this report is to tie Scotland even tighter to the UK, nothing more nothing less. A fairer society? They have no intention of that.

So HMRC couldn't collect LIT but it can collect a variety of taxes from specific parts of the great union of the UK?

Wardog you can't call unionists Home Rulers - then again I suspect you have your tongue in your cheek or subtly suggest the "Home" refers to London.

Anonymous said...

Subroas

Agreed, that a power would threaten the UK's 'social union' according to the Commission. is reason to avoid recommending it, even it meant scots would be better off.

This is one instance of a general theme in the report, the fudged balancing act between deeper and more accountable devolution, on the one hand, and the continued maintenance of an unequal union on the other.

The stage is set however for an even more interesting 2 years, wait and see the national conversation ramped up.

subrosa said...

The national conversation needs ramped up Wardog. People are asking questions now and we need to give them answers.

I suspect they will ask more in the coming days because they won't see any benefit from Calman. Neither do I.

DougtheDug said...

The worked example on page 113 of the Calman Report gives the basics of how the new funding works. Scotland will get a portion of the tax revenues raised in Scotland and they will be toppped up to the Barnett Formula level with a block grant.

(Reduced Block Grant) + (Proportion of Scottish Tax Revenues) = (Current Scottish Barnett Funding).

To do this the UK Government will have to estimate the probable tax take in Scotland in the current year from the Scottish tax take in the previous year or series of years in order to work out the current block grant component of the funding to ensure it comes up to the Barnett levels.

What this means is that it is pointless for any Scottish Government to try and increase its spending power by a natural increase in tax revenues through higher incomes or a better economy. Any natural increase in tax revenues due to a well managed economy will be clawed back in a reduced grant at the next review of the block grant component of the Scottish Parliament funding. It also means that any fall in tax revenues will also be compensated by an increase in the block grant at the next review for any Scottish government which doesn’t have an economic clue. A nice safety net for the Lib-Labs but “Financial Accountability” it ain’t.

Any Scottish Government can increase its spending power by upping the tax rates in Scotland but that would be electoral suicide unless the extra tax take was specifically earmarked for some very, very special voter approved project. Deliberately reducing the tax take would mean either reduced services or very good efficiency savings but as Scottish costs are usually higher due to the low population density in some areas it is unlikely that it could be more efficient than services in England and it therefore would mean a reduction in services. Again electoral suicide.

It is in simple terms a dog’s breakfast. The only good part of the report is that it recommends that the Scottish Parliament should have the ability to borrow money which uprates it to the powers of a Scottish local authority.

The rest of the report is all about how the Scottish and UK Parliaments should work together as happy bunnies or how the Scottish Parliament should work internally and the transfer of some minor powers to Scotland such as control of airguns.

If anything it is even more of a mess than the Steel Commission report but as both were concerned with trying to impose federal funding schemes on a provincial system of government while trying to work out a funding scheme which gave no hint of advantage to the SNP it’s not surprising.

The fact that Brown likes it give it the seal of Jonah.

I've posted an easily readable single list of all the recommendations in the Calman Report on Britologywatch's blog.

subrosa said...

Thanks Doug much appreciated. Aye, as I thought, all it does is attempt to tie us tighter to London.

Related Posts with Thumbnails