Brown retreats from tax powers remarks

Published on Thursday 11 September 2008 22:58

GORDON Brown yesterday backtracked from comments made last week supporting more tax-raising powers for Holyrood.

In his monthly briefing to journalists the Prime Minister said he had been misunderstood when he made his speech to business leaders at a CBI Scotland function on Thursday last week. It was widely interpreted by the Scottish and UK media that he was supporting greater fiscal autonomy for Scotland.

The SNP went as far as to claim its success in government had forced Mr Brown apparently to change his mind.

The interpretation that his views on greater tax-raising powers and assigning tax revenue directly to Holyrood had changed was reinforced by briefings received from Labour sources by journalists.

In the speech, Mr Brown said that the "one problem" with devolution was that Holyrood was only responsible for how it spent money and not the size of its budget.

However, yesterday Mr Brown said that his speech had been "misread". He claimed all he was saying was that he supported the Calman Commission's review of the devolution settlement.

"This is a matter that has got to be looked at," he said.

"We will wait for the Calman Commission report and we will look at what the Calman Commission say and, in the light of that, make our decision."

The latest twist in Mr Brown's position has raised the spectre of the internal row caused by Wendy Alexander's support for a referendum on independence. In the course of a week the party swung from one position to the another daily.

Political opponents in Scotland have seized on the Prime Minister's comments as "yet another example of dithering and indecisiveness".

A source close to Alex Salmond said: "It's just typical Gordon Brown dithering.

"The problem is that nobody knows what he's thinking from one day to the next because he doesn't even seem to know his own mind.

"But again he is reacting to the agenda set by the SNP."

The Liberal Democrats put in a submission to the Calman Commission proposing greater tax-raising powers for Holyrood at the end of last week.

They were delighted at the prospect of support for their position from the Prime Minister.

But yesterday the Liberal Democrat leader Tavish Scott said he was disappointed with Mr Brown's latest comments.

"Clearly he flew a kite in Glasgow last week then in London this week he quickly pulled it back down again.

"Labour need to decide whether they are on the side of a progressive reform to strengthen Scotland's place in the UK."

A spokesman for the Scottish Conservatives said: "This is clearly another example of Gordon Brown's dither.

"Hopefully he won't be the Prime Minister who has to calmly consider the recommendations of the Calman Commission and help shape the future of devolution."

But supporters of Mr Brown have accused the other parties of simply trying to make mischief.

Lord Foulkes, a former Scotland Office minister and now an MSP, said: "These accusations really are entirely rubbish.

"Gordon Brown's position has not changed a jot. He has always said this is a matter for the Calman Commission and he is, after all, one of the architects of the Calman Commission.

"He has always supported its work and said it was the forum to look at what should happen with devolution. One of its sub-committees is actually looking at fiscal autonomy."

The Calman Commission will today take evidence in Holyrood from former first minister Henry McLeish and representatives of the Institute of Chartered Accountants on the future of fiscal powers.

IN QUOTES

GORDON Brown at CBI Scotland dinner in Glasgow on Thursday, 4 September:

"Devolution has worked but I do see one problem – the Scottish Parliament is wholly accountable for the budget it spends, but not for the size of its budget. And that budget is not linked to the success of the Scottish economy.

"That is why we asked the Calman Commission to look carefully at the financial accountability of the Scottish Parliament. And this is a critical part of Calman's remit."

Gordon Brown briefing journalists on Thursday, 11 September:

"I think, if I may say so, you misread my speech. I said to the Scottish CBI that the Calman Commission was looking at these issues.

"They had to look at the case as to whether a parliament that is spending money should have some responsibility for raising money. That is exactly what I said at the time of the Calman Commission was formed. I was saying nothing more than I had already said.

"This is a matter that has got to be looked at. We will wait for the Calman Commission report and we will look at what the Calman Commission say and, in the light of that, make our decision."