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More tax powers urged for Scots 'Radical' Holyrood powers urged
(about 2 hours later)
Holyrood would take charge of half the income tax raised in Scotland, under plans being put forward by the body reviewing Scottish devolution. Holyrood should take charge of half the income tax raised in Scotland under "radical" plans put forward by the body reviewing Scottish devolution.
The Calman Commission will also say the Scottish Parliament should be in control of national speed limits, drink driving laws and airguns legislation. The Calman Commission also said the Scottish Parliament should control national speed limits, drink-driving laws and airguns legislation.
The body, set up in 2007, is delivering its final report on Monday. In its final report, the body also said powers on winding up companies should be returned to Westminster.
It is also expected to suggest some devolved powers, such as food standards labelling, be returned to Westminster. The commission was set up to review devolution 10 years on.
The commission, voted in at Holyrood by Scotland's main opposition parties to look at devolution after 10 years, has also been supported by UK ministers. The long-awaited report's key recommendation called for a new Scottish-set income tax.
It proposed that the Treasury should deduct 10p from standard and upper rates of income tax in Scotland and give MSPs the power to decide how to raise cash.
The new powers would be combined with a cut in the block grant that Scotland gets from the UK Government.
Douglas FraserBusiness editor Well, let's not get ahead of ourselves.Douglas FraserBusiness editor Well, let's not get ahead of ourselves.
These are suggestions from a commission that has found, as others did before, that tinkering with constitutional powers, and tax powers in particular, is mighty tricky.These are suggestions from a commission that has found, as others did before, that tinkering with constitutional powers, and tax powers in particular, is mighty tricky.
Given that they are intended to preserve the integrity of the United Kingdom, you could assume that they would have to find favour at Westminster. Douglas Fraser's blogGiven that they are intended to preserve the integrity of the United Kingdom, you could assume that they would have to find favour at Westminster. Douglas Fraser's blog
Its main recommendation would see half the present income tax rate, at lower and upper bands, placed in Holyrood's hands - which would see a cut in the block grant Scotland receives from the UK Treasury. The commission, chaired by Sir Kenneth Calman, also said powers to run Scottish elections should be handed from Westminster to Holyrood.
The Calman Commission was backed by Labour, the Conservatives and the Liberal Democrats at Holyrood. Devolving nature conservation at sea to Scotland was also among its 24 recommendations, as well as giving MSPs control over stamp duty, landfill tax and air passenger duty.
However, the Scottish Government has criticised the body, because it is not looking at the issue of independence and has ruled out Westminster handing full financial powers to Scotland. Sir Kenneth concluded: "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."
Former Scottish Labour leader Wendy Alexander - a key figure in getting the commission set up - has described Holyrood as "a pocket money parliament" and has argued it is wrong that MSPs cannot currently make major spending decisions. The commission was voted in at Holyrood in 2007 by Scotland's main opposition parties - Labour, the Liberal Democrats and the Conservatives - and was supported by UK ministers.
The Scottish Government has criticised the body, because it is not looking at the issue of independence and has ruled out Westminster handing full financial powers to Scotland.
SNP ministers have their own rival constitutional review - the National Conversation - currently under way.SNP ministers have their own rival constitutional review - the National Conversation - currently under way.
The Scottish Government said it would welcome any new powers for Holyrood, but insists Scots have to be given their say on Scotland's future in an independence referendum - something the minority SNP administration does not currently have enough parliamentary support to hold.
The Calman Commission is also expected to recommend that the Scottish Parliament take charge of stamp duty and air passenger duty.