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| Scottish independence: Cameron backs giving Holyrood income tax power | Scottish independence: Cameron backs giving Holyrood income tax power |
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| David Cameron has backed plans for Scotland to set its own income tax rates, including the freedom for the first time to cut taxes below the level of the rest of the UK. He said the proposals, published by Scottish Tory leader Ruth Davidson on Monday, would offer Scottish voters "real powers with real consequences" if they voted no in September's independence referendum. | |
| The new powers, potentially including control of housing benefit and Scotland's share of VAT receipts, were described by Davidson as a radical and "thoroughly Conservative vision" for greater devolution. | |
| "We want to make the Scottish parliament more responsible for the money it spends – these are real powers with real consequences," Cameron said. "We can now say clearly that, with a no vote this September, Scotland can have the best of both worlds: a strong and responsible Scottish parliament underpinned by the security of the whole United Kingdom." | |
| The proposals represent a significant shift in Tory thinking on devolution. Cameron has already signalled that he is in greater favour of devolution than any previous Tory prime minister as he confronts growing support for independence among Scottish voters. | |
| With just over 100 days to go before the referendum on 18 September, a further poll confirmed that the gap between yes and no has narrowed, while leaving the pro-UK campaign firmly in front. | With just over 100 days to go before the referendum on 18 September, a further poll confirmed that the gap between yes and no has narrowed, while leaving the pro-UK campaign firmly in front. |
| The poll by Ipsos Mori for STV found that support for independence has grown since February by four points up to 36%, while support for the UK has declined three points to 54%. Removing the 10% who were undecided, the poll showed a significant and clear lead for the pro-UK Better Together campaign, with 60% saying they would vote no against 40% yes. | The poll by Ipsos Mori for STV found that support for independence has grown since February by four points up to 36%, while support for the UK has declined three points to 54%. Removing the 10% who were undecided, the poll showed a significant and clear lead for the pro-UK Better Together campaign, with 60% saying they would vote no against 40% yes. |
| The results came as a split emerged in the no camp after Gordon Brown, former prime minister and Labour leader, accused Cameron's government of a tactical error by vetoing Alex Salmond's proposal for a sterling currency union in a way that evoked a "Scotland versus Britain" conflict. | |
| Brown is due to launch the Scottish Labour party's official anti-independence campaign in Edinburgh on Tuesday morning, and in an interview with the Daily Record, Brown said he understood why Scottish voters reacted badly. "Patriotic Scots need a better reason for supporting what I think is a positive statement and belief – that we can have a strong Scottish parliament and still be part of the United Kingdom," he said. "But if the only propaganda that comes from the Conservatives is 'Britain says no', it's bound to have a reaction in Scotland. It is bound to make people feel that people are talking down to us or are not taking us seriously or are trying to bully us." | |
| Davidson, who has previously resisted any further tax control for Holyrood beyond modest powers to vary income tax by 10p in the pound which come into force in 2016, said she would campaign for an across-the-board 1p tax cut at the 2016 Scottish elections using those extra powers. | Davidson, who has previously resisted any further tax control for Holyrood beyond modest powers to vary income tax by 10p in the pound which come into force in 2016, said she would campaign for an across-the-board 1p tax cut at the 2016 Scottish elections using those extra powers. |
| The Tory proposals – which echo proposals from senior Welsh Tories for the Welsh parliament – would need Labour and Liberal Democrat support before being implemented, but deep differences are emerging between them. | The Tory proposals – which echo proposals from senior Welsh Tories for the Welsh parliament – would need Labour and Liberal Democrat support before being implemented, but deep differences are emerging between them. |
| With the Lib Dems offering a wider range of extra tax powers, Labour has said it would resist giving Scotland full control over income tax to avoid "a race to the bottom" where Scotland could compete with England on tax cuts. | With the Lib Dems offering a wider range of extra tax powers, Labour has said it would resist giving Scotland full control over income tax to avoid "a race to the bottom" where Scotland could compete with England on tax cuts. |
| The new Tory proposals, set out in a report from Lord Strathclyde, former Conservative leader in the House of Lords, would give Holyrood complete control over personal income-tax policy in Scotland, equivalent to about 40% of the devolved parliament's £30bn budget. | The new Tory proposals, set out in a report from Lord Strathclyde, former Conservative leader in the House of Lords, would give Holyrood complete control over personal income-tax policy in Scotland, equivalent to about 40% of the devolved parliament's £30bn budget. |
| Strathclyde suggested the Tories could support Labour plans for housing benefit and attendance allowance to be devolved, worth approximately £2.2bn, but only if that did not wreck the new universal credit system being introduced by the work and pensions secretary, Iain Duncan Smith. | Strathclyde suggested the Tories could support Labour plans for housing benefit and attendance allowance to be devolved, worth approximately £2.2bn, but only if that did not wreck the new universal credit system being introduced by the work and pensions secretary, Iain Duncan Smith. |
| The report also proposed allowing Scotland to spend its share of the UK's VAT receipts, but not to devolve them. That would be illegal under EU VAT rules, which require the tax to be set at national member state level. That would be equivalent to about 50% of Holyrood's budget. | The report also proposed allowing Scotland to spend its share of the UK's VAT receipts, but not to devolve them. That would be illegal under EU VAT rules, which require the tax to be set at national member state level. That would be equivalent to about 50% of Holyrood's budget. |
| "If Scotland votes no in the forthcoming referendum, we believe that the UK and the countries and nations within it need to operate and be at ease with themselves," Strathclyde said. "We therefore need to devolve in tune with the past, [and] make the glue which binds the union stronger." | "If Scotland votes no in the forthcoming referendum, we believe that the UK and the countries and nations within it need to operate and be at ease with themselves," Strathclyde said. "We therefore need to devolve in tune with the past, [and] make the glue which binds the union stronger." |