Henry McLeish: Don’t split hairs, back devo-plus

FORMER Labour First Minister Henry McLeish has backed the devo-plus option, which would see the Scottish Parliament take control of most taxes, as an alternative to full independence in the referendum, Mr McLeish has previously called for devo-max – full economic powers – to be a second question on the independence referendum ballot paper.

However, Mr McLeish said that supporters of more powers for Holyrood should not “split hairs” as he called on them to unite around devo-plus, which would see the parliament control most taxes, including income and corporation tax, but not pensions that would be devolved under devo-max.

The former Scottish Labour leader went on to warn his party that it would not be able to campaign solely on a “No to independence” platform in the run-up to the referendum in autumn 2014.

He said: “It will be very difficult to have a ‘No to independence’ campaign running for more than two years and it will be something that will feel very negative.

“The Labour Party has to tread very carefully when it comes to any suggestion that the party should join together with the Conservatives in a No campaign.

“It would be quite ridiculous if we spent two years defeating independence without debating what comes after the referendum.”

Mr McLeish went on to say although he still favoured the devo-max option in the “long term” that he would be content with devo-plus.

He said: “My main concern is that we get an alternative and both devo-max and devo-plus are radical substantial areas of devolution. We shouldn’t split hairs. There is a lot of support for devo-plus and I would be content with that option, which is a radical way forward for devolution.

“It would be a pity if we didn’t get a deal done between supporters of devo-max and devo-plus. My view is that devo-max is still the best long-term option, but it’s important what we can get united around an attractive proposition that’s an alternative to independence and status quo unionism.”

Meanwhile, Jeremy Purvis, the leader of the official devo-plus campaign, warned that many voters would be “excluded” during what he said could be a “polarised” referendum campaign.

He said: “There are still very major questions over what the implications of a ‘yes’ are, and so far the ‘no’ proposition is not making a positive case for reform to Scotland’s powers within the UK.

“Devo-plus offers this positive case and has the potential of being the best way forward to meet Scotland’s needs.”

the four options

STATUS QUO, PLUS SCOTLAND ACT

The UK government has recently enacted the Scotland Act, which will allow Holyrood to vary income tax by 10p in the pound. Mostly, this is due to the new Scottish income tax rate it will levy every year, topping up the block grant. MSPs will also get the power to set stamp duty and will have the authority over new borrowing powers. Holyrood will also get powers over non-financial laws, including the drink-drive limit. This is on top of full control over health, education, and most transport and funding decisions.

DEVO-MAX

A Scottish plan put forward by the SNP government in its previous white paper as a watered-down alternative to independence. Holyrood would take full control over all taxes and income generated in Scotland and would also take responsibility for their collection. It would then negotiate with London on how to pay for services which it wanted provided by Westminster, such as defence. Scotland would remain in the UK, although some believe the system would end up as independence.

DEVO-PLUS

A proposal put forward by the think-tank Reform Scotland. Westminster would retain responsibility over VAT and National Insurance. But then most other taxes would pass to Holyrood, including income tax, giving MSPs the power to decide on rates and bands. The scheme would also see Holyrood given power over all social protection, such as welfare payments. The think-tank claims this would ensure more coherence, given that the Scottish Government already oversees health and skills spending.

Independence

After a “yes” vote, Scotland would negotiate an independence settlement with the UK. Under the SNP proposal, the new country would initially keep the pound, with interest rates set by the Bank of England. The SNP has also suggested that UK-wide bodies could be kept, for example, the DVLA. However, after elections, Scotland would become a fully sovereign nation, with its own defence and foreign affairs policy. Negotiations would also centre on its relationship with the EU and UN.