Argument over powers as Scotland Bill published at Westminster

Proposed new powers for the Scottish Parliament have been confirmed with the publication at Westminster today of the Scotland Bill – and an argument has already broken out over whether they go far enough.

The UK Government claims the legislation will make the Scottish Parliament one of the most powerful devolved parliaments in the world; the Scottish Government that it falls well short of fully implementing the Smith Commission’s recommendations.

Further powers contained in the Scotland Bill include: 

• enabling the Scottish Parliament to set the thresholds and rates of income tax in Scotland and keep all the money raised in Scotland;
• providing the Parliament with the first 10% of VAT revenue raised in Scotland (currently half of those revenues);
• devolving air passenger duty and the aggregates levy;
• giving the Parliament around £2.5bn worth of new welfare powers.

The Government intends the bill to be approved in time for the political parties to set out their plans for the new powers ahead of the May 2016 Scottish Parliament elections.

Introducing the legislation, Scottish Secretary David Mundell said that the UK and Scottish Governments would agree a new fiscal framework to ensure Scotland enjoyed the benefits of economic decision-making closer to home within a strong and secure UK system and shared UK currency.

He added: "We made a promise to turn the all-party Smith Commission agreement into law and we are now doing that at the earliest possible opportunity.

"The onus is now on the Scottish Government to start telling people in Scotland what they are actually going to do with these new powers. What changes are they going to make to Scottish income tax levels? How much extra money are they going to borrow? What changes are they going to make to welfare payments or programmes to help people find work?"

However John Swinney, Deputy First Minister in the Scottish Government, said the bill failed to deliver the Smith proposals in a number of areas identified by the Scottish Government in January, and by a cross party committee of the Scottish Parliament earlier this month. These included:

• continued vetoes over changes to universal credit;
• continued restrictions on who the Scottish Government would be able to pay carers benefits to;
• failure to devolve the full range of employment support services currently delivered by the Department of Work & Pensions;
• no explicit power to create new benefits in devolved areas;
• missing or restricted powers in areas of consumer protection, energy, and the Crown Estate.

He claimed the bill also contained eight separate vetoes where the Scottish Government had to seek the agreement of the Secretary of State before exercising devolved powers.

Mr Swinney commented: “The Scottish Government made extensive and constructive suggestions to improve the draft legislation, while all parties in the Scottish Parliament backed the Devolution Committee’s findings that the draft clauses did not translate political agreement into legislation.

“The bill’s significant shortfalls will have a detrimental impact on the ability of future Scottish Governments to exercise powers, take distinct policy decisions or deliver reform.

“The UK Government has published a Scotland Bill which sells Scotland short and doesn’t deliver either the spirit or intent of the Smith Agreement. Its shortcomings must be rectified if it is to be seen as a credible reflection of the Smith Agreement and the UK Government’s commitment to Scotland.” 

Bill reflects Smith proposals, Society states

The Scotland Bill reflects the Smith Commission agreement, according to the Law Society of Scotland.

Speaking following the publication of the bill, Alistair Morris the Society's President, said the bill would give the Scottish Parliament a range of powers in important areas of law and policy, including tax and welfare.

On the further devolution of tax powers, Mr Morris commented: “It appears that the Smith Commission recommendations have been incorporated, with thresholds and rates of income tax on earnings in Scotland being devolved, along with air passenger duty, the aggregates levy and an assignment of VAT. Tax law is a complex and difficult area and we intend to examine this closely to ensure that its proposals will work in practice."

Regarding the constitutional clauses, he continued: “The recognition in these clauses that the Scottish Parliament and the Scottish Government are to become permanent aspects of the UK constitution is a fulfilment in legal terms of the Smith recommendations. These proposed changes put into law the political intention of the parties who contributed to the Smith Commission process."

Mr Morris added: “As the regulator of Scottish solicitors, we have a particular interest in seeing the devolution of estate agency as well as some remaining aspects of solicitor regulation, such as immigration advice, financial services advice and insolvency practice. This would allow for a more flexible approach which, above all, maintains standards and better protects the consumer of legal services.”

Mr Morris's term of office ends tomorrow, when Christine McLintock assumes the presidency.