SCOTTISH NATIONALISTS have dismissed proposals from a commission appointed by the unionist parties for a “radical” increase in the tax-raising powers of the Holyrood parliament.
The Scottish Labour, Conservative and Liberal Democrat parties established the Calman Commission to review the devolution settlement 10 years on – and in answer to first minister Alex Salmond’s “national conversation” about the path to possible Scottish independence.
Yesterday, as expected, Sir Kenneth Calman proposed that the Scottish parliament be responsible for half the income tax raised in Scotland – in return for a cut in the current favourable block grant of some £32 billion that Scotland receives from the UK exchequer.
Changes in the existing “Barnett formula” for determining expenditure levels across the regions of the United Kingdom are likely, in turn, to have implications for the Northern Ireland Executive and Assembly at Stormont.
Scottish secretary of state Jim Murphy confirmed that the proposed steering group – including himself and the Labour, Conservative and Lib Dem leaders in Scotland – would shortly begin talks with the UK treasury on how the Calman proposals could be carried forward within Calman’s proposed timetable of “less than” 10 years.
Sir Kenneth recommended that income tax rates in Scotland should be set 10p lower, with the Scottish Parliament then free to determine “a Scottish rate” of income tax, the proceeds of which would go to Scotland.
The commission also proposed other reforms designed to improve the working relationship between Holyrood and Westminster, with the Scottish parliament also acquiring new powers over the setting of national speed limits, drink driving limits, and the regulation of air guns, as well as the administration of Scottish elections.
Describing devolution as a “real success”, Sir Kenneth said it could still work better: “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, with a union secure for the future.”
British prime minister Gordon Brown described the proposed financial reforms as “imaginative and bold”, adding that, if implemented, they would provide “greater accountability” for the Scottish parliament within a UK context.
Scottish Conservative leader Annabelle Goldie also hailed the opportunity to provide for a more stable Scotland within a more stable United Kingdom.
Scottish Liberal Democrat leader Tavish Scott claimed the proposals would take them “towards a real home rule settlement”.
SNP constitution minister Mike Russell, however, dismissed the proposals as falling “far short of the requirements of our nation, and the challenges of our times.
“Scotland needs full fiscal autonomy, allowing this country to raise all the money it spends and take big economic decisions. This is the best and simplest solution – anything else risks being a messy fudge. At present, we have a pocket-money parliament. Under the Calman proposals, Scotland would have a Saturday job but the pay would be deducted from our pocket money.”