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Scotland Should Get Increased Powers, Including Over Taxation, Commission Says Scotland Should Get Increased Powers, Including Over Taxation, Commission Says
(about 7 hours later)
LONDON — Scotland would gain sweeping new powers, including control of income tax, under plans announced on Thursday that are intended to defuse pressure for Scottish independence. LONDON — Scotland was promised sweeping powers over taxation and welfare spending on Thursday under a proposed deal meant to address concerns that helped drive a Scottish attempt to secede from the United Kingdom in September.
The proposals have big implications not just for Scotland, but for the rest of the United Kingdom. And they have set off a lively debate about where power should lie in a country that prides itself on doing without a written constitution. The groundbreaking proposals have the backing of major political leaders in both England and Scotland, but a final vote on legislation to enact the changes is not expected until next year after a new government is elected. And even as the plan was commended by political leaders, it was also raising new questions about how to share power equitably within the United Kingdom.
Pressure for Scottish independence culminated in a referendum in September, in which 55 percent of voters rejected secession and 45 percent voted in favor. But before the referendum, when opinion polls suggested that the result was too close to call, the leaders of all three main British political parties promised Scots more autonomy if they rejected independence. The proposed changes represent the biggest shake-up of Scotland’s relationship with London since the Scottish Parliament was re-established in Edinburgh 15 years ago. British leaders, shaken by polls that had showed momentum shifting toward independence, promised Scots more autonomy if they rejected secession in the referendum in September. (The independence bid later lost by a vote of 55 percent to 45 percent.)
Thursday’s report came from an independent commission, set up to work out the details of increased autonomy, which was presided over by Robert Smith, a member of the House of Lords. The recommendations, which suggest the biggest shake-up of Scotland’s relationship with London since the Scottish Parliament was re-established in Edinburgh 15 years ago, have the support of the main political parties. The plan announced on Thursday was devised by a commission that included representatives from Scotland’s main political parties. Under its proposals, the Scottish Parliament would have the power to set income tax rates, and some of the revenues from sales taxes raised in Scotland would go toward the Scottish budget. The Scottish government would also be able to control the duties imposed on passengers traveling through Scottish airports.
Under the plan, the Scottish Parliament would have the power to set income tax rates and brackets, though not the level at which people need to start paying tax. In addition, Scotland would gain significant control over welfare spending. Scotland generally leans more to the left than England and one of the main goals of many of those who pushed for secession was to be able to spend more liberally on social programs.
Some of the revenues from sales taxes raised in Scotland would go toward the Scottish budget; the Scottish government would be able to control the duties imposed on passengers traveling through Scottish airports; it would gain a significant portion of welfare spending; and the Scottish Parliament would be given the power to allow 16- and 17-year-olds to vote. The Scottish Parliament also would be given the power to allow 16- and 17-year-olds to vote.
However, the plans are likely to prove contentious in England and, reporting before the announcement, The Times of London warned in a headline of “fears of a federal U.K.” But even as political leaders lauded the proposals on Thursday, tensions about their wider ramifications were clear.
Prime Minister David Cameron of Britain has already called for curbs on the ability of Scottish lawmakers elected to the British Parliament in Westminster to decide on English issues. There is also likely to be pressure to give greater decision-making powers to other cities and regions in the United Kingdom. Prime Minister David Cameron on Thursday welcomed the commission’s findings saying it was a “good day for the U.K.” But he again called for curbs on the ability of Scottish lawmakers elected to the British Parliament to decide on issues related solely to England.
The opposition Labour Party opposes that idea because 41 of its lawmakers were elected from Scotland.
Wales’s first minister, Carwyn Jones, meanwhile, called for Wales to receive similar powers to those being devised for Scotland. “If it’s going to Scotland and not to Wales, how else are the people of Wales meant to look at it other than it being discriminatory on the part of the U.K. government?” he told the BBC.
And there was criticism from some English lawmakers including Edward Leigh, a Conservative former minister, who said there were “inconsistencies and unanswered questions” in the report. Rushing the process risked “throwing petrol on the embers of English resentment” about Scottish separatism, he said in Parliament.
Legislation on the recommendations is expected to be drafted early next year and put in place by the government that will be formed after a general election in May.Legislation on the recommendations is expected to be drafted early next year and put in place by the government that will be formed after a general election in May.
In a statement, Mr. Smith said that the recommendations agreed to by the parties would result in “the biggest transfer of powers” to the Scottish Parliament since its establishment. Robert Smith, a member of the House of Lords who led the commission on Scotland, said that the recommendations would result in “the biggest transfer of powers” to the Scottish Parliament since its establishment.
“This agreement is, in itself, an unprecedented achievement,” he said. “It demanded compromise from all of the parties.” Leading supporters of Scottish independence accepted the panel’s recommendations, although some said they would have liked more concessions. Nicola Sturgeon, Scotland’s first minister and leader of the Scottish National Party, said the proposed changes fall “well short of the proposals from the Scottish government and those from a wide cross section of civic Scotland.”
The plans have been most problematic for the opposition Labour Party, which traditionally relies on Scotland to elect many of its lawmakers in Westminster and currently holds 41 Scottish seats. The party could suffer significantly if the powers of Scottish representatives were limited, and it is resisting Mr. Cameron’s push to put such curbs in place.
However, the commission’s report was endorsed by Jim Murphy, a leading contender to take over the leadership of the Scottish Labour Party, which is vacant.