Devolve more to Scots, commission says

Monday, 15 June 2009 12:00 AM

By Alex Stevenson

A review of Scottish devolution has put forward what it describes as "radical and innovative" proposals - including giving Holyrood more taxation powers.

The Calman Commission, chaired by the University of Glasgow's chancellor Sir Kenneth Calman, wants to see the Scottish parliament's accountability improved by giving it more responsibility over the raising of tax revenues.

At present it controls half of public spending in Scotland but is only responsible for ten per cent of the taxation levied there, through council tax and non-domestic rates.

Today's proposals would knock ten pence off the national income tax rate and hand the responsibility for this revenue to Scotland.

Rather than receiving the money through the block grant from London it would be up to the Scottish government to decide whether to raise these funds.

The devolution of other taxation powers is also recommended. Stamp duty land tax, landfill tax and air passenger duty are among those which the Commission says would work better if controlled from north of the border.

"In our view these recommendations will give the Scottish parliament real financial accountability, and will do so in a way which does not undermine the union - social or economic," the Commission says.

"Once implemented, these arrangements will make clear that the Scottish parliament is not wholly dependent on another parliament for its funding, and has the responsibility for raising its own revenue in a way which is both fair and accountable to its electorate."

Its final report also calls for a range of additional powers to be devolved, from the setting of speed limits down to the regulation of airguns.

In some areas, it prefers that partially-devolved areas be controlled fully from London - like the regulation of health professionals and procedure for winding up companies.

The report also recommends improvements to the way the London and Edinburgh governments work together. It calls for a state of Scotland debate in the Commons and for the reinvigoration of joint ministerial committees, among other proposals, in a bid to improve cooperation.

"Our unanimous proposals to strengthen devolution will update the Scotland Act in the light of experience, devolving additional responsibilities to the Scottish parliament in areas identified by the people of Scotland themselves," it concludes.

"Our radical and innovative proposals to introduce a new Scottish rate of income tax will significantly strengthen the accountability of the Scottish parliament, and enable it to serve the people of Scotland better, within a union secured for the future."

The Calman Commission was set up to review progress under Scottish devolution in April 2008.

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