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McConnell warning on extra powers McConnell warning on extra powers
(about 6 hours later)
First Minister Jack McConnell is expected to warn that Holyrood will "subside into inertia" if MSPs continue to obsess about gaining new powers.First Minister Jack McConnell is expected to warn that Holyrood will "subside into inertia" if MSPs continue to obsess about gaining new powers.
Delivering a lecture on Tuesday, he will strongly endorse the existing devolved settlement.Delivering a lecture on Tuesday, he will strongly endorse the existing devolved settlement.
However, two leading economists have argued that the Scottish Parliament must gain more control over tax.However, two leading economists have argued that the Scottish Parliament must gain more control over tax.
Their report comes in the wake of the SNP, the Conservatives and the Lib Dems lobbying for more tax-raising powers. Their report comes in the wake of the SNP, the Conservatives and the Lib Dems lobbying for more tax-varying powers.
Mr McConnell will argue in his speech that devolution has already made a difference and that Holyrood has substantial powers related to the economy and public services. Mr McConnell will argue in his speech at the annual JP Mackintosh lecture in Haddington, East Lothian, that devolution has already made a difference and that Holyrood has substantial powers related to the economy and public services.
He will say that MSPs should focus on those things instead of persistently demanding more powers.He will say that MSPs should focus on those things instead of persistently demanding more powers.
The tide of change has now engulfed the arguments for the status quo Jim Mather SNP enterprise spokesmanThe tide of change has now engulfed the arguments for the status quo Jim Mather SNP enterprise spokesman
Mr McConnell believes that otherwise the devolution settlement will sink into political paralysis.Mr McConnell believes that otherwise the devolution settlement will sink into political paralysis.
He will argue in his speech at the annual JP Mackintosh lecture in Haddington, East Lothian, that devolution has already made a difference and that Holyrood has substantial powers. But the case for more tax-varying powers was being made on Tuesday by Glasgow University economist, Professor Ronald MacDonald and an American colleague, Professor Paul Hallwood, of the University of Connecticut.
Mr McConnell will say that MSPs should focus on those things instead of persistently demanding more. They said that, under the current block grant from Westminster, Holyrood has no incentive to grow the economy or control spending.
But the case for more tax-raising powers will be made on Tuesday by Glasgow University economist, Professor Ronald MacDonald and an American colleague, Professor Paul Hallwood, of the University of Connecticut.
They will say that, under the current block grant from Westminster, Holyrood has no incentive to grow the economy or control spending.
'Better off without London''Better off without London'
The SNP believes there is enough evidence to claim that Labour is the only party which does not believe that Scotland should have control over its own revenues and spending.The SNP believes there is enough evidence to claim that Labour is the only party which does not believe that Scotland should have control over its own revenues and spending.
Last week a think-tank set up by the Conservatives called for Holyrood to be handed greater powers on tax-raising.Last week a think-tank set up by the Conservatives called for Holyrood to be handed greater powers on tax-raising.
A commission has recommended to the Lib Dems that Holyrood be responsible for raising the money it spends.A commission has recommended to the Lib Dems that Holyrood be responsible for raising the money it spends.
SNP enterprise spokesman Jim Mather said the paper by Prof MacDonald and Prof Hallwood heightened the case for independence.SNP enterprise spokesman Jim Mather said the paper by Prof MacDonald and Prof Hallwood heightened the case for independence.
The Scottish Executive gets block grant funding from WestminsterThe Scottish Executive gets block grant funding from Westminster
The academics' report in the Fraser of Allander Institute Quarterly Economic Commentary restates their case for more powers, after an earlier paper this year came in for criticism.The academics' report in the Fraser of Allander Institute Quarterly Economic Commentary restates their case for more powers, after an earlier paper this year came in for criticism.
The paper criticised the current funding system for not serving Scotland's economic and financial interests.The paper criticised the current funding system for not serving Scotland's economic and financial interests.
Mr Mather said: "The tide of change has now engulfed the arguments for the status quo.Mr Mather said: "The tide of change has now engulfed the arguments for the status quo.
"More and more people believe that Scotland and Scottish families will be better off without London government holding their purse strings.""More and more people believe that Scotland and Scottish families will be better off without London government holding their purse strings."
Think tankThink tank
Former Holyrood Presiding Officer Lord Steel said that a commission under his chairmanship had recommended to the Lib Dems that Holyrood be responsible for raising the money it spends.Former Holyrood Presiding Officer Lord Steel said that a commission under his chairmanship had recommended to the Lib Dems that Holyrood be responsible for raising the money it spends.
He said: "We were greatly influenced by the experience of Ireland in boosting their economy with taxation policies markedly different from those of Westminster."He said: "We were greatly influenced by the experience of Ireland in boosting their economy with taxation policies markedly different from those of Westminster."
The Conservative think tank on the issue included both Tory and non-Tory figures and was chaired by Douglas Osler, former HM senior chief inspector of education in Scotland.The Conservative think tank on the issue included both Tory and non-Tory figures and was chaired by Douglas Osler, former HM senior chief inspector of education in Scotland.
Its report said: "Lowering tax rates would result in higher tax income and encourages investment and innovation."Its report said: "Lowering tax rates would result in higher tax income and encourages investment and innovation."