The Scotland Bill

The Scotland Bill is nearing the end of its parliamentary processes at both Westminster and Holyrood parliaments and the UK and Scottish Governments have been in negotiation over final amendments said Cabinet Secretary for Government Strategy Bruce Crawford this week. I was sure - as were some of you - that the Scottish Government would kick the Bill into the long grass, but it appears enough concessions have been made for it to be acceptable.

Having agreed a package of changes to the Bill and undertakings on its implementation, now that the harmful provisions to take back existing devolved powers have been removed, both Governments will now recommend that their respective Parliaments support the Bill.

The Scottish Government has secured important changes to the sections of the Bill dealing with borrowing powers and the Supreme Court and to protect Scottish interests, particularly with regard to securing agreement on financial implementation including adjustment to the block grant.

However, Bruce Crawford said the Bill was still a 'missed opportunity to give Scotland the tools to stimulate the economy and create jobs'. Along with many he believes the Bill will be out of date before it reaches the statute book.

In the first official assessment of Scotland's potential economic powers the Office for Budget Responsibility said the total could rise to around £6.4bn by the tax year 2016-17.

Under the terms of the Bill Scots would see their income tax reduced by 10p in the pound. Holyrood would then levy a new Scottish income tax, which the OBR reckons would amount to £4.4bn during 2012-13 and £5.6bn in 2016-17.

Holyrood will also receive full control of Scottish stamp duty which the OBR said could raise £328m next year, rising to £536m in 2016-17; a landfill tax which could raise £123m, rising to £157m and an aggregates levy which could raise £43m rising to £51m. These are all forecasts reflecting the view taxes will increase with the economic recovery and they should be regarded as professional speculation, because if the economy doesn't recover at the rate expected, then income will be sharply decreased.

At the moment the Scottish Government can borrow £500m to cover short-term spending gaps.  With the 'new powers' it will have the ability to borrow up to £2.2bn to finance long-term, long awaited, infrastructure projects.  Capital borrowing is expected to be capped at £230m a year.

However, power devolved is power retained.  If controlling some tax revenue is good and controlling more is better, then control of all our own tax must be best. Independence is the only means by which Scotland can control its own taxes. Devo-this-that-and-the-other isn't the answer.

Update:  Hazel has posted on this same subject.

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M'Lords And The Scotland Bill

Today should be an interesting one for the supporters of Scottish independence because this afternoon Jim Wallace - Lord Wallace of Tankerness to his pals - will be introducing the second reading of the Scotland Bill in the House of Lords.

Slowly but surely support for independence is growing and the unionist parties are like fish out of water, gasping their last breaths with their same old mantras about how Scotland would be incapable of making her own decisions without the help of the Westminster government.

The feeble attempts in the last week, by the London-based Scottish secretary Michael Moore and Treasury secretary Danny Alexander, to attack the Scottish government have backfired badly and at one point, when watching Danny Alexander's speech, I very nearly felt sorry for him. I've heard better speeches from a first year debating group.

Today the former MSP George Foulkes, will put forward an amendment to the Scotland Bill to make the UK government call a referendum on Scottish independence by 2013, while Jack McConnell will call for unionist parties and businesses to come together to make the positive case for Scotland to remain in the UK.

Kick-off is 2.30pm and the fun can be watched on the BBC's Democracy Live. It may be worth recording it if you can't watch it live.

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Tory MP Calls for Barnet Formula to be Scrapped

David Mowat is Conservative MP for Warrington South and a member of the Scottish Affairs Select Committee.

He is calling for the Scotland Bill to be amended to scrap the Barnet Formula which, he says, is manifestly unfair to the English taxpayer.

I don't intend to analyse his essay.  My only comment would be 'Scrap the Scotland Bill'.

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Fairness

This week saw the launch of the long-awaited Scotland Bill which Michael Moore, Scottish Secretary, described as 'reflecting the settled will of the Scottish people'.

I'm not so sure it's settled in the least although it's certainly progress.  Who would have thought that, after less than 4 years in power, the SNP would manage to provoke unionist parties into proposing such an extension of Scottish constitutional powers since devolution - even although Alex Salmond calls it 'Calman Minus'?  There is no doubt these changes were a result of the SNP performing well in government; in fact so well that the unionist parties, in a desperate attempt to curtail any progress to the SNP's Independence Bill, suggested Westminster could look at ways to increase powers to the Scottish Parliament.  The result was the Calman Commission and the unionist parties pledged their support for its findings.  A watered-down version of the findings are included in the new draft Scotland Bill.

Many who want full fiscal powers for Scotland have criticised the proposals as 'too little' and 'tinkering at the edges', however I too think Alex Salmond must be pinching himself. 

Newsnet Scotland is promoting a suggestion that those who support Scottish independence to write 'independence' on the coalition's AV referendum ballot slip on 5th May.  I wouldn't put it past the powers that be in Westminster to now combine all ballots onto one paper but I will take part as long there is no indirect damage to my Scottish general election vote.

Another suggestion, which could be very effective alongside this campaign, is made by that tenacious writer of letters to Scottish newspapers, Alex Orr.  In today's Scotsman he makes a very good case for a Scottish referendum on the Scotland Bill.

... Given the fact that the 3p adjustment necessitated a referendum question, it is only right and proper that the Scotland Bill proposals should be put to the Scottish electorate in a referendum.

Few would or could argue with that, especially after the noise opposition MSPs made last week about the SNP government allowing the current 3p tax policy to lie in the long grass.  Surely they would think it only fair the people have their say?

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