New Holyrood powers being outlined under Scotland Bill

Published on Tuesday, 30 November 2010 09:13
Posted by Scott Buckler

Plans to give Scotland new powers to control a third of its budget are due to be unveiled, under new legislation

The UK government's Scotland Bill will allow Holyrood to raise half its income tax and devolve powers in several other areas.

Scottish Secretary Michael Moore said the bill would mark the biggest transfer of fiscal power to Scotland since the creation of the UK.

But Scotland's SNP government said full fiscal autonomy was needed.The Scotland Bill, to be launched in Edinburgh, follows the findings of the Calman Commission review of devolution.Under the recommendations, the UK Treasury would deduct 10p from standard and upper rates of income tax in Scotland and give MSPs the power to decide how to raise cash.

The new powers would be combined with a cut in the block grant, currently about £30bn, which Scotland gets from the UK government.Scotland already has the ability to vary income tax by 3p in the pound, although the so-called tartan tax has never been used.

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