Salmond hits out at taxes plan for Scotland

Published on Sunday 9 November 2008 21:40

ALEX Salmond yesterday attacked moves which he claimed would give Holyrood a defined share of tax revenues but not the means to change the rates themselves.

The First Minister said he believed both the Labour Party and the Calman Commission, which was set up to look into more powers for the Scottish Parliament, were "moving towards" assigned taxes for Scotland, not more tax powers. The difference is crucial. If tax revenues were assigned to Scotland, the Scottish Government would be given exactly the amount raised by each tax north of the Border – so much for income tax, so much for stamp duty and so on.

This amount of money would go up and down as the tax takes varied from year to year but Scottish ministers would not have the ability to influence those revenues because they would not have power over the tax levers themselves.

The UK government is due to publish its submission to the Calman Commission today and there were suggestions yesterday that it will call for assigned tax revenues for Scotland, but no change to the tax powers themselves.

Jim Murphy, the Scottish Secretary, said both he and the Prime Minister were in favour of greater "financial accountability" for the Scottish Parliament but he did not endorse new tax powers for Holyrood.

Mr Murphy said: "As the Prime Minister said to the CBI, the big challenge in this process is how we can get a degree of financial responsibility for the Scottish Parliament and financial autonomy. That is about doing so within the structure of the United Kingdom.

"We would like to see a system where the Scottish Parliament was more responsible and more accountable for its spending decisions."

In response, Mr Salmond said it appeared as if Labour ministers in London were moving away from any new powers for the Scottish Parliament.

He said: "There are signs that Labour are already retreating from any suggestion of any more legislative power for the Scots parliament. As soon as the pressure comes off the Labour Party, they revert to type, of wanting to preserve and protect as much power as they possibly can in London and give as little to Scotland as they can possibly get away with."

Mr Salmond said of Labour: "They seem to be moving in the direction of assigned revenues." But that outcome would be worse than the present system, because Scotland would lose "control and certainty over its revenue".