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David Mundell: New tax powers should be devolved in 2017 | David Mundell: New tax powers should be devolved in 2017 |
(about 1 hour later) | |
New income tax powers for Holyrood should come into force in 2017 - a year earlier than expected - according to the Scottish secretary. | New income tax powers for Holyrood should come into force in 2017 - a year earlier than expected - according to the Scottish secretary. |
The Scotland Bill will devolve control over rates and bands of income tax to the Scottish Parliament. | The Scotland Bill will devolve control over rates and bands of income tax to the Scottish Parliament. |
David Mundell said the UK government was keen to see the new powers transferred by April 2017. | David Mundell said the UK government was keen to see the new powers transferred by April 2017. |
The Scottish government said it would not support a deal that left Scotland worse off. | The Scottish government said it would not support a deal that left Scotland worse off. |
The Scotland Bill, which is currently before the UK Parliament, is the legislation drawn up as a response to the recommendations made by the Smith Commission following the "No" vote in last year's independence referendum. | The Scotland Bill, which is currently before the UK Parliament, is the legislation drawn up as a response to the recommendations made by the Smith Commission following the "No" vote in last year's independence referendum. |
The commission recommended devolving the power to set rates and bands of income tax for Scottish taxpayers to Holyrood. | The commission recommended devolving the power to set rates and bands of income tax for Scottish taxpayers to Holyrood. |
Talks have been going on between the Scottish and UK governments as to when these powers should be transferred, with the likely date widely expected to have been 2018. | Talks have been going on between the Scottish and UK governments as to when these powers should be transferred, with the likely date widely expected to have been 2018. |
Mr Mundell has now said he wants it to happen in the next 18 months in order to give Holyrood "more power and responsibility". | Mr Mundell has now said he wants it to happen in the next 18 months in order to give Holyrood "more power and responsibility". |
Such a move could make taxation a major issue in next year's Holyrood election campaign. | Such a move could make taxation a major issue in next year's Holyrood election campaign. |
Mr Mundell told BBC Radio's Good Morning Scotland programme: "What we're trying to do is ensure that the powers that were recommended by the Smith Commission are in place as soon as is practical. | Mr Mundell told BBC Radio's Good Morning Scotland programme: "What we're trying to do is ensure that the powers that were recommended by the Smith Commission are in place as soon as is practical. |
"That will allow for next year's Scottish Parliament elections, for there actually to be a debate about tax and spending in Scotland. | "That will allow for next year's Scottish Parliament elections, for there actually to be a debate about tax and spending in Scotland. |
'Significant power' | 'Significant power' |
Mr Mundell said the new timetable would allow whoever was in power in 2017 to use the new powers when deciding Scotland's tax and spending plans. | Mr Mundell said the new timetable would allow whoever was in power in 2017 to use the new powers when deciding Scotland's tax and spending plans. |
He added: "We've set out an offer to them [the SNP] to make these tax powers available from 2017. | He added: "We've set out an offer to them [the SNP] to make these tax powers available from 2017. |
"Of course, if they don't want to take that up then that is a matter for them but I think they would have to explain that to the people of Scotland as to why - having consistently argued for powers and having this very significant power to raise £11bn in revenue - they chose not to do it." | "Of course, if they don't want to take that up then that is a matter for them but I think they would have to explain that to the people of Scotland as to why - having consistently argued for powers and having this very significant power to raise £11bn in revenue - they chose not to do it." |
A spokesman for Scottish Finance Secretary John Swinney said: "The Tories just need to get on with the job of delivering more powers for Scotland, and a deal which meets the spirit and letter of the Smith Commission recommendations. | A spokesman for Scottish Finance Secretary John Swinney said: "The Tories just need to get on with the job of delivering more powers for Scotland, and a deal which meets the spirit and letter of the Smith Commission recommendations. |
"What is currently proposed fails that test, as it limits Scottish ministers' ability to use the new powers and retains vetoes for UK ministers. | "What is currently proposed fails that test, as it limits Scottish ministers' ability to use the new powers and retains vetoes for UK ministers. |
"We still need to reach agreement on a fiscal framework that gives the Scottish government flexibility to use the new powers effectively, to boost the economy and create jobs - and we have made it crystal clear that we will not support any proposed deal which risks leaving Scotland worse off." | "We still need to reach agreement on a fiscal framework that gives the Scottish government flexibility to use the new powers effectively, to boost the economy and create jobs - and we have made it crystal clear that we will not support any proposed deal which risks leaving Scotland worse off." |
Labour called for Mr Mundell to accept its amendments to the Scotland Bill to ensure the Smith agreement was "delivered in full". | |
Shadow Scottish Secretary Ian Murray MP said: "We welcome the news that the tax powers in the Scotland Bill are to be brought forward, and we will look closely at what the government proposes. | |
"These major new tax powers, whenever they are introduced, will give us the chance to really transform Scotland and give everybody the best chance in life. | |
"Now the Scottish government need to live up to their word about making our country a fairer place to live." |