Scottish independence: The five options

WHEN it comes to Scotland’s future, there is often talk of ‘devo max’, full autonomy and greater devolved powers. Here, we provide a rundown of the five possibilities for Scotland.

STATUS QUO, PLUS SCOTLAND BILL If the new Scotland Bill legislation is passed, Holyrood will move from raising about 15 per cent of its own budget to some 35 per cent. Mostly, this would be due to the new Scottish income tax rate it will levy every year, topping up the existing block grant. MSPs will also get the power to set stamp duty and will have substantial new borrowing powers.

DEVO PLUS Under a proposal put forward by think tank Reform Scotland, Westminster would retain responsibility over VAT and National Insurance, but most other taxes would pass to Holyrood, including income tax, giving MSPs the power to decide on rates and bands. Welfare would also be devolved.

HOME RULE Some taxes would be “apportioned” to Scotland at a level that allows current spending rates to be covered. Power to vary these taxes would then be devolved. Other taxes would have revenues “assigned” because, if the rates differed from Westminster, it could cause cross-Border problems.

FEDERALISM A UK-wide solution that would entail a new written constitution setting out the powers of the state. MSPs would set most of Scotland’s taxes and HM Revenue and Customs would do the collecting. There would be a new UK funding deal, based on the need to balance out funding across the country.

DEVO MAX A watered-down alternative to independence. The Scottish Parliament would take full control over all taxes and income generated in Scotland and take responsibility for their collection. It would then pay London for the likes of defence and foreign affairs.