Scotland to be granted income tax autonomy

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AFP, London :
Scotland is set to get sweeping new powers including setting its own income tax rates, under plans unveiled Thursday by a cross-party commission on greater devolution.
“The recommendations in the agreement will result in the biggest transfer of powers to the Scottish parliament since its establishment,” Lord Robert Smith, who chaired the commission, said in Edinburgh.
“The parliament will be more powerful, more accountable and more autonomous,” he said, referring to the assembly set up in 1999 as part of the last major devolution campaign in Britain.
The commission was set up following a last-ditch promise made by the leaders of Britain’s unionist three main political parties to grant Scotland greater autonomy if it voted “No” in the September independence referendum.
Other proposals include control over air passenger duty, some welfare payments and part of national sales tax, as well as the right for 16- and 17-year-olds to vote in Scottish elections, below the national threshold of 18.
Decisions on corporation tax will stay on a national level.
British Prime Minister David Cameron said he was “delighted” with the proposals.
“This is a good day for the UK… We are keeping our promise to the Scottish people,” the Conservative leader said.
He also pledged to put forward a plan by Christmas to grant greater devolution to England-a key demand from supporters in England who resent the powers being given to Scotland.
“The report today also makes the case for English votes for English laws unanswerable,” he said.
Draft laws for greater Scottish devolution are to be drawn up by January 25.
The British government has come under pressure to deliver on its promise after a close-run victory for those who wanted Scotland to remain in the United Kingdom.
Scotland’s devolved government is run by the pro-independence Scottish National Party (SNP), whose ranks have swelled since the referendum.
Scottish First Minister Nicola Sturgeon said the proposals were “not real home rule”.
“I welcome all new powers-and pay tribute to Lord Smith-but 70 percent of our taxes and 85 percent of welfare (are) staying at Westminster,” the SNP leader said.
Deputy First Minister John Swinney lamented that it did not include several measures the SNP wanted, but welcomed the outcome “as far as it goes”.
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