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SNP submits full fiscal autonomy amendment to Scotland Bill John Swinney defends SNP's full fiscal autonomy amendment to Scotland Bill
(about 5 hours later)
The SNP has submitted an amendment to the Scotland Bill calling for the Scottish Parliament to be able to introduce full fiscal autonomy. Scotland's Deputy First Minister John Swinney has backed his party's bid to have Full Fiscal Autonomy (FFA) included in the Scotland Bill.
The party's Westminster leader Angus Robertson said the proposals for more devolved powers "do not go far enough". His defence came as new Office for Budget Responsibility figures predicted falling North Sea oil revenues.
He added: "We are also seeking to amend the Scotland Bill to give the Scottish Parliament the ability to introduce full fiscal autonomy." During FMQs at Holyrood, Scottish Labour's Deputy Leader Kezia Dugdale asked Mr Swinney what oil price was needed to balance the books under FFA.
The current Bill includes plans for Holyrood to control income tax. The SNP minister responded by saying FFA would allow economic growth.
However, full fiscal autonomy would go further and give the Edinburgh parliament the responsibility for all areas of tax and spending except defence and foreign affairs. Mr Swinney, who was standing in for First Minister Nicola Sturgeon until she returns from a four-day visit to the US, added: "Our GDP per head used to be sixth in the UK, now it is now third only behind London and the South East.
Following the election in which the SNP won 56 of Scotland's 59 seats, party leader and First Minister of Scotland Nicola Sturgeon told the BBC: "Our manifesto set out very clearly that we would want to move to full fiscal responsibility. Clearly that will take a number of years to implement." "Our productivity has increased from 96% of UK levels in 1999 to being in line with UK levels in 2012.
"The moral of the story is where we can exercise distinctive economic policies in Scotland, we can transform the economic performance of this country, and for me that is what fiscal autonomy is all about."
What is full fiscal autonomy (FFA)?What is full fiscal autonomy (FFA)?
To find out more read Douglas Fraser's FFA explainer written during the election campaign.To find out more read Douglas Fraser's FFA explainer written during the election campaign.
But Prime Minister David Cameron said he did not support full fiscal autonomy for Scotland, stating that it would mean £7bn of cuts or extra tax-raising. Ms Dugdale's line of questioning focused on research her party had done on the price of oil under FFA.
After meeting Ms Sturgeon in mid-May, Mr Cameron said: "Let's make sure Smith is implemented in full. She said the country would need a global oil price of $200 (£129) to "balance Scotland's books". The price stood at about $65 on Thursday afternoon.
Analysis by the Institute for Fiscal Studies said that in 2015/16 Scotland would have a shortfall or "fiscal gap" of £7.6bn.
Ms Dugdale said: "So disastrous is the SNP's policy, that it is predicated on an oil price that has never been reached before."
Income tax
Earlier, the SNP - which won 56 out of Scotland's 59 seats at the election - had made public that it would submit an amendment to the Scotland Bill calling for the Scottish Parliament to be able to introduce full fiscal autonomy.
The party's Westminster leader Angus Robertson said the current proposals for more devolved powers, which are based on the Smith Commission recommendations, "do not go far enough".
He added: "We are also seeking to amend the Scotland Bill to give the Scottish Parliament the ability to introduce full fiscal autonomy."
As it stands, the Bill's new powers for Holyrood include;
However, full fiscal autonomy would go further and give the Edinburgh parliament the responsibility for all areas of tax and spending except defence and foreign affairs.
After the Conservative's won the UK election with an overall majority, Prime Minister David Cameron said he did not support full fiscal autonomy for Scotland, stating that it would mean £7bn of cuts or extra tax-raising.
Following a meeting Ms Sturgeon in mid-May, Mr Cameron said: "Let's make sure Smith is implemented in full.
I'm going to keep the commitment I made to the people of Scotland. Let's get that done first because it does create a really strong Scottish Parliament.I'm going to keep the commitment I made to the people of Scotland. Let's get that done first because it does create a really strong Scottish Parliament.
"Of course, if people want to make future proposals I'll look at them.""Of course, if people want to make future proposals I'll look at them."
The SNP's Mr Robertson said he believed the Scottish Parliament should decide "if and when we move to greater financial autonomy".
He added: "Tory and Labour politicians are working together once again to try and block meaningful additional powers for Scotland.
"In doing so they are also misrepresenting Scotland's financial position.
"The IFS figures they cite suggest that Scotland would have a deficit of £7.6bn in 2015/16. But over the five years to 2013/14, the UK's cumulative deficit has been worth over £600bn."