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Scottish devolution: SNP sends more powers letter to UK minister Scottish devolution: SNP sends more powers letter to UK minister
(about 2 hours later)
The SNP has sent a letter to the UK's Scottish Secretary David Mundell calling for more powers to be included in the Scotland Bill.The SNP has sent a letter to the UK's Scottish Secretary David Mundell calling for more powers to be included in the Scotland Bill.
It wants Holyrood to have control of corporation tax, capital gains tax, the minimum wage and National Insurance.It wants Holyrood to have control of corporation tax, capital gains tax, the minimum wage and National Insurance.
The demand comes as the Scotland Bill, which will give greater tax raising powers to MSPs, is scrutinised by MPs.The demand comes as the Scotland Bill, which will give greater tax raising powers to MSPs, is scrutinised by MPs.
The UK government has already confirmed it would reject an SNP amendment to introduce full fiscal autonomy.The UK government has already confirmed it would reject an SNP amendment to introduce full fiscal autonomy.
Despite the fresh legislation promising that the Scottish Parliament will have control over 40% of tax and 60% of borrowing, the current SNP administration says that does not go far enough.Despite the fresh legislation promising that the Scottish Parliament will have control over 40% of tax and 60% of borrowing, the current SNP administration says that does not go far enough.
A letter from the SNP's Deputy First Minister John Swinney to Mr Mundell formally called for more powers, including;A letter from the SNP's Deputy First Minister John Swinney to Mr Mundell formally called for more powers, including;
Mr Swinney also believed that full fiscal autonomy (FFA) was the best route to fulfilling Scotland's potential.Mr Swinney also believed that full fiscal autonomy (FFA) was the best route to fulfilling Scotland's potential.
His party has tabled an amendment to the Scotland Bill which would see FFA implemented at a time of Holyrood's choosing.His party has tabled an amendment to the Scotland Bill which would see FFA implemented at a time of Holyrood's choosing.
'Full fiscal shambles''Full fiscal shambles'
But Conservative minister Mr Mundell said the government would reject it claiming that move would cost every family in Scotland £5,000 and described the plan as a "full fiscal shambles".But Conservative minister Mr Mundell said the government would reject it claiming that move would cost every family in Scotland £5,000 and described the plan as a "full fiscal shambles".
The first day of the committee stage of the Bill begins on Monday afternoon from the floor of the House of Commons when MPs will scrutinise the legislation line by line. The first day of the committee stage of the Bill began on Monday afternoon from the floor of the House of Commons when MPs start scrutinising the legislation line by line.
The Scotland Bill would give the Scottish Parliament new powers including;The Scotland Bill would give the Scottish Parliament new powers including;
It would also allow Holyrood to create new benefits in devolved areas and to make discretionary welfare payments.It would also allow Holyrood to create new benefits in devolved areas and to make discretionary welfare payments.
What is full fiscal autonomy (FFA)?What is full fiscal autonomy (FFA)?
Holyrood would have control over all of taxation in Scotland, including oil and gas revenues.Holyrood would have control over all of taxation in Scotland, including oil and gas revenues.
It would pay Whitehall a portion of the takings for defence, the Foreign Office, the Treasury and shared regulators such as Ofcom and Ofgem.It would pay Whitehall a portion of the takings for defence, the Foreign Office, the Treasury and shared regulators such as Ofcom and Ofgem.
Those in favour say it would provide real power to grow the economy faster.Those in favour say it would provide real power to grow the economy faster.
Those against say it would leave a large gap in the nation's finances - a £7.6bn shortfall in the next financial year, over and above a share of the deficit that the UK is already running.Those against say it would leave a large gap in the nation's finances - a £7.6bn shortfall in the next financial year, over and above a share of the deficit that the UK is already running.
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.
The Scotland Bill was the first government bill to be introduced after the general election, and is now the first to reach the committee stage, with MPs to begin line-by-line scrutiny of it in the House of Commons on Monday.The Scotland Bill was the first government bill to be introduced after the general election, and is now the first to reach the committee stage, with MPs to begin line-by-line scrutiny of it in the House of Commons on Monday.
Mr Mundell said: "The prime minister has made it clear that the government will carefully consider any changes to the bill that are sensible.Mr Mundell said: "The prime minister has made it clear that the government will carefully consider any changes to the bill that are sensible.
"An amendment that kills off the Barnett formula and ends the sharing of resources across the UK is about as far away from sensible as one can get. It would be a full fiscal shambles that would cost every family in Scotland around £5,000."An amendment that kills off the Barnett formula and ends the sharing of resources across the UK is about as far away from sensible as one can get. It would be a full fiscal shambles that would cost every family in Scotland around £5,000.
"The government will not accept amendments that are not good for Scotland. The Institute for Fiscal Studies has estimated that fiscal autonomy would mean Scotland having almost £10bn less to spend by the last year of this parliament.""The government will not accept amendments that are not good for Scotland. The Institute for Fiscal Studies has estimated that fiscal autonomy would mean Scotland having almost £10bn less to spend by the last year of this parliament."
Ahead of the House of Commons scrutiny of the Bill, Mr Swinney said: "The Prime Minister said he would 'govern on the basis of respect'.Ahead of the House of Commons scrutiny of the Bill, Mr Swinney said: "The Prime Minister said he would 'govern on the basis of respect'.
"He has to respect the outcome of the election in Scotland where 50% of those who vote, chose a party committed to fiscal autonomy and substantially greater powers than conceived of in the Smith Commission.""He has to respect the outcome of the election in Scotland where 50% of those who vote, chose a party committed to fiscal autonomy and substantially greater powers than conceived of in the Smith Commission."
Scotland's finance secretary explained that if given the correct powers, the Scottish government would introduce business tax credits for research and development to "support innovation within Scotland".Scotland's finance secretary explained that if given the correct powers, the Scottish government would introduce business tax credits for research and development to "support innovation within Scotland".
He added that that would also involve a reduction in corporation tax and National Insurance for companies that were taking forward particular innovations that were "strengthening the research and development base of Scotland".He added that that would also involve a reduction in corporation tax and National Insurance for companies that were taking forward particular innovations that were "strengthening the research and development base of Scotland".
'Utterly confused''Utterly confused'
Labour's only MP in Scotland, Ian Murray, said the Office for Budget Responsibility (OBR) "blew a further hole in the SNP's plans" when it cut its forecast for oil revenues in the next 20 years by £34.5bn to just £2.1bn in total.Labour's only MP in Scotland, Ian Murray, said the Office for Budget Responsibility (OBR) "blew a further hole in the SNP's plans" when it cut its forecast for oil revenues in the next 20 years by £34.5bn to just £2.1bn in total.
Mr Murray added: "The SNP were once all for full fiscal autonomy, then they weren't so keen and now they say they want it but just not for a wee while yet.Mr Murray added: "The SNP were once all for full fiscal autonomy, then they weren't so keen and now they say they want it but just not for a wee while yet.
"It's an utterly confused position. It's now make your mind up time for the SNP on whether they really want to deliver their manifesto commitment to full fiscal autonomy.""It's an utterly confused position. It's now make your mind up time for the SNP on whether they really want to deliver their manifesto commitment to full fiscal autonomy."
Labour has tabled its own amendments to the Scotland Bill which would prevent any UK-wide election or EU referendum being held on the same day as the Scottish Parliament elections.Labour has tabled its own amendments to the Scotland Bill which would prevent any UK-wide election or EU referendum being held on the same day as the Scottish Parliament elections.
The amendments would also see the establishment of a Constitutional Convention to examine greater devolution to all parts of the UK.The amendments would also see the establishment of a Constitutional Convention to examine greater devolution to all parts of the UK.