Member Article

Scotland to receive full income tax powers on the road to devolution

The Scottish Parliament is to set to receive full powers over income tax, welfare spending and the voting age after recommendation by the Smith Commission.

The commission has been looking at ways of devolving power to Holyrood from Westminster in line with a pre-referendum promise by pro-Union parties.

The Smith Commission was set up after pro-Union party leaders vowed to increase the powers of the Scottish Parliament just days before September’s referendum.

A key factor in Scots voting against independence, the commission’s recommendations will be passed to Westminster, where the Government will draft legislation which will se it becoming law after the next Westminster election in May 2015.

Lord Smith’s report, due out today, will also recommend new powers for the Scottish Parliament over some welfare benefits and for the voting age in Scotland to be lowered to 16.

Lord Smith is due to recommend:

• Powers over income tax being handed to the Scottish Parliament, allowing it to sets bands and rates on earned income. (tax on unearned income will remain controlled by Westminster)
• Scotland raises more of the money it spends and will then decrease the amount of Westminster block grant it receives.
• Holyrood will take control of some individual benefits, like attendance and carer’s allowance, cold weather payments and winter fuel allowance. (Pensions and child benefit will remain the responsibility of the UK government.)
• Holyrood will take control of its own elections. There will be a call for this particular legislation to be fast-tracked so that 16 and 17-year-olds might be able to vote at the 2016 Scottish Parliament elections, in the same way as they did at the referendum.

This was posted in Bdaily's Members' News section by Clare Burnett .