George Foulkes: People should have their say on increased tax powers for Scotland

Published on Monday 4 July 2011 17:59

ONE of Scottish Labour's most senior figures wants to force a referendum on new tax powers the United Kingdom government is handing to Holyrood.

Former Labour government minister Lord George Foulkes said that he wants the Westminster parliament to support a referendum on the Scotland Bill, which will allow MSPs to impose a Scottish rate of income tax of up to 10p in the pound.

The former Labour MSP compared the transfer of power from Westminster to Holyrood in the Scotland Bill, which also includes new responsibilities for air passenger duty and stamp duty land tax, to the power to vary tax by 3p approved by voters in the 1997 referendum on devolution.

Lord Foulkes said that since the bill proposes a "large" transfer of responsibilities, Scottish voters should be consulted on the changes in a referendum.

The move comes as First Minister Alex Salmond is pressing ahead with plans for a vote on independence towards the end of the SNP's five-year term in power.

Lord Foulkes admitted that a "no" vote in a referendum on the Scotland Bill would "harm" the SNP's campaign for a "yes" vote in the lengthy run-up to an independence plebiscite.

He said that there was a "genuine" democratic case for a Scotland Bill poll, as "people are getting fixated with the independence vote".

But a leading SNP MSP warned that the Lord Foulkes' amendment plan was a "wrecking" tactic that could "damage" and "undermine" the Scotland Bill.

SNP MSP John Wilson said: "What he's proposing here is a disruptive tactic and it's coming from someone who should know better. It could damage the bill and damage the reputation of Westminster.

"I would urge Lord George Foulkes to seriously consider his position over this issue, as he will not be doing his reputation or his party any favours."

Lord Foulkes said he was in talks with other peers from the Labour and Tory parties about putting down an amendment to the Scotland Bill to try to force a referendum on the transfer of the tax powers. He said that the move would not take place until the autumn when the Scotland Bill returns to the Lords.

Lord Foulkes said that he was "seriously considering" moving the amendment himself, as he claimed the Tories in the House of Lords "lacked credibility" over devolution issues.

Some of the powers in the Scotland Bill were originally set-out in the Calman Commission - the body backed by the unionist parties at Holyrood to look at greater powers for MSPs.

Lord Foulkes said: "People are getting fixated with the independence vote and all the talk is about a referendum on this.

"But there is a question about the need for a referendum on the Calman proposals."Logic suggests that there should be a referendum on the new tax powers, which would give the Scottish Parliament much greater powers to raise tax than voters were originally to approve in the devolution referendum in 1997. However, there's been an assumption that the Scotland Bill proposals would just sail through and that after that there would be an independence referendum.

"There's a genuine case for a referendum among Scottish voters on the powers set out in the Scotland Bill, but this should be treated separately to any independence referendum."