‘Scotland split over direction of devolution’

Lord Smith said he was delighted by the response from civic groups and wider society. Picture: PA

SCOTLAND is split over the issue of more powers for Holyrood, with businesses rejecting the devo-max settlement called for by the SNP but many charities supporting it.

Lord Smith of Kelvin yesterday published more than 380 submissions received by his commission that was set up to deliver a stronger Scottish Parliament.

Analysis of the submissions revealed radically differing views on how much power should be devolved to Holyrood in the aftermath of the referendum No vote.

A host of Yes campaign groups responded to Lord Smith’s call for submissions and produced documents recommending that as much power as possible is transferred to Edinburgh.

Calls for a so-called devo-max settlement – which would see all powers save those over defence and foreign affairs come to Edinburgh – were not supported by key businesses and business organisations.

Politicians from the SNP, Labour, the Tories, Liberal Democrats and Greens are taking part in negotiations chaired by Lord Smith that will determine the extra powers that are to be transferred north from Westminster.

Yesterday Lord Smith oversaw the third session of talks held by the commission, which will also take account of the views of businesses and civic Scotland.

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In a submission typical of the business response, the Glasgow-based Weir Group argued that the maintenance of a single market was vital to business.

The Weir Group recognised that there was consensus for further income tax devolution, but warned that tax divergence would increase costs.

The Conservatives and Lib Dems have said that Holyrood should get full control of income tax, but the Weir Group argued that some elements of the levy should remain consistent across the UK to protect the single labour market.