ALISTAIR Darling warned that handing full power over income tax to Holyrood would increase borrowing costs for the entire UK.
Mr Darling’s remarks come ahead of the publication of a cross party deal on devolution from a commission chaired by Lord Smith of Kelvin later this week.
Lord Smith’s commission is expected to recommend the full devolution of income tax and the rates, as well as powers over welfare.
CONNECT WITH THE SCOTSMAN
• Subscribe to our daily newsletter (requires registration) and get the latest news, sport and business headlines delivered to your inbox every morning