Kirk wants extra powers for Holyrood to increase taxes and give cash to poor

Published on Saturday 13 December 2008 18:48

THE Kirk is backing moves to hand more financial powers to the Scottish Parliament so that MSPs can vote to raise taxes and give more cash to the poor.

Senior figures in the Church of Scotland say they support moves to increase direct taxes and argue that giving Holyrood powers over all financial matters would be the best way to bring this about.

They claim that Scotland places a higher priority on redistribution than elsewhere in the UK, and suggest that Holyrood should be able to act on that.

In evidence to the Calman Commission, which is studying possible reforms to the Scottish Parliament, the Rev Ian Galloway, convener of the Church and Society Council, said: "Only an increased fiscal authority would give the Parliament the capacity to reflect that in its policies."

The evidence stated: "We believe that a substantial move towards fiscal autonomy would better enable the Scottish Parliament and Government to respond to Scottish concerns and give effect to distinctive priorities.

"If a Scottish Government were elected on a commitment to redistribute wealth, more levers should be available than the current power to vary income tax.

"Further, if the Scottish Parliament wished to target benefits in new ways, it should have that power. This would also ensure a greater degree of fiscal accountability and responsibility."

In its evidence, the Kirk confirmed it would like to shift more weight on to direct taxes – such as income tax and National Insurance – and away from indirect taxes such as VAT.

Galloway added: "We are clear that, as a matter of principle, we would hope that the balance of taxation could veer more towards the direct rather than the indirect because that is coupled with social justice outcomes."

The Kirk also claims that the current welfare reform programme will not work as well in Scotland as it does in England.

Last week, the UK Government announced plans to compel benefit claimants to look for work or face having their benefits cut.

Deputy leader of the Scottish Tories, Murdo Fraser – who is a member of the Kirk – criticised the hierarchy's position last night.

He said: "I suspect that the Church hierarchy are out of touch with the opinions of the grassroots membership.

"I suspect that there are not that many Church members who want Scotland to become the highest-taxed part of the United Kingdom with all the implications that would have for the future growth of the Scottish economy."