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| Version 0 | Version 1 |
|---|---|
| Scotland Bill: Peers want to halt legislation until fiscal rules are agreed | Scotland Bill: Peers want to halt legislation until fiscal rules are agreed |
| (about 9 hours later) | |
| A House of Lords committee has called for the Scotland Bill to be put on hold until rules on new tax and spending powers are clarified. | A House of Lords committee has called for the Scotland Bill to be put on hold until rules on new tax and spending powers are clarified. |
| The Economic Affairs Committee said more detail was needed on the fiscal framework, still to be finalised. | The Economic Affairs Committee said more detail was needed on the fiscal framework, still to be finalised. |
| The legislation is due for its second reading in the Lords on 24 November. | The legislation is due for its second reading in the Lords on 24 November. |
| The UK government said discussions on the fiscal framework were constructive and both sides aimed to complete them "as soon as possible". | The UK government said discussions on the fiscal framework were constructive and both sides aimed to complete them "as soon as possible". |
| But Scotland's Finance Secretary John Swinney said the Scottish government would only approve the bill if it had a "fair fiscal framework agreement". | But Scotland's Finance Secretary John Swinney said the Scottish government would only approve the bill if it had a "fair fiscal framework agreement". |
| Devolution commission | Devolution commission |
| During the Scottish independence referendum campaign, the Conservatives, Labour and the Liberal Democrats vowed to give greater responsibility to Holyrood if voters said "No". | During the Scottish independence referendum campaign, the Conservatives, Labour and the Liberal Democrats vowed to give greater responsibility to Holyrood if voters said "No". |
| On 18 September, the electorate decided by a margin of 55% to 45% that Scotland should remain in the UK. | On 18 September, the electorate decided by a margin of 55% to 45% that Scotland should remain in the UK. |
| Lord Smith of Kelvin was appointed to head up a special commission to look at greater devolution for Scotland. Following the all-party agreement reached by the commission, the Scotland Bill was drawn up by the UK government. | Lord Smith of Kelvin was appointed to head up a special commission to look at greater devolution for Scotland. Following the all-party agreement reached by the commission, the Scotland Bill was drawn up by the UK government. |
| At the beginning of November, the bill - containing new powers over income tax and VAT - passed its final stages in the House of Commons. | At the beginning of November, the bill - containing new powers over income tax and VAT - passed its final stages in the House of Commons. |
| But the details of the funding package that will accompany the legislation are still being negotiated by the Scottish and UK governments. | But the details of the funding package that will accompany the legislation are still being negotiated by the Scottish and UK governments. |
| The House of Lords Economic Affairs Committee said the Scotland Bill had the potential to "fundamentally change" the UK, was being progressed with ''undue haste'' and should not proceed further until the devolution fiscal framework was published. | The House of Lords Economic Affairs Committee said the Scotland Bill had the potential to "fundamentally change" the UK, was being progressed with ''undue haste'' and should not proceed further until the devolution fiscal framework was published. |
| The committee also said: | The committee also said: |
| Committee chairman Lord Hollick commented: "The Scotland Bill has the potential to fundamentally change the UK and impact on us all both politically and economically. It is crucial that what is proposed is stable and sustainable. | Committee chairman Lord Hollick commented: "The Scotland Bill has the potential to fundamentally change the UK and impact on us all both politically and economically. It is crucial that what is proposed is stable and sustainable. |
| "Parliament is being asked to pass the bill before we are told full details about the fiscal arrangements that will underpin this new era of devolution - that cannot be right. | "Parliament is being asked to pass the bill before we are told full details about the fiscal arrangements that will underpin this new era of devolution - that cannot be right. |
| "We are calling on the progress of the bill to be halted until the details are agreed and published. | "We are calling on the progress of the bill to be halted until the details are agreed and published. |
| "That would at least allow peers the opportunity that MPs were denied of scrutinising and amending this important legislation as informed participants." | "That would at least allow peers the opportunity that MPs were denied of scrutinising and amending this important legislation as informed participants." |
| A UK government spokesman said the Lords' report was an "important contribution" to the debate on devolution. | |
| "Fiscal framework discussions have been constructive and focused on securing a fair and workable fiscal framework which delivers the cross-party Smith agreement," the spokesman said. | "Fiscal framework discussions have been constructive and focused on securing a fair and workable fiscal framework which delivers the cross-party Smith agreement," the spokesman said. |
| "Both governments have agreed not to comment until an agreement is reached. | "Both governments have agreed not to comment until an agreement is reached. |
| "Delivering Smith and retaining the Barnett Formula was a clear manifesto commitment for the government. | "Delivering Smith and retaining the Barnett Formula was a clear manifesto commitment for the government. |
| "The framework will be based on the principles set out in the Smith agreement. Both governments aim to complete the framework as soon as possible in order to give respective parliaments time for due consideration of the framework and Scotland Bill" | "The framework will be based on the principles set out in the Smith agreement. Both governments aim to complete the framework as soon as possible in order to give respective parliaments time for due consideration of the framework and Scotland Bill" |
| 'Satisfactory and fair' | 'Satisfactory and fair' |
| John Swinney, who is Scotland's deputy first minister, said he did not agree with "many" of the conclusions of the Lords committee, including its proposal to remove the Barnett formula. | John Swinney, who is Scotland's deputy first minister, said he did not agree with "many" of the conclusions of the Lords committee, including its proposal to remove the Barnett formula. |
| However, he did agree that the fiscal framework was "essential" to delivering the Smith Commission proposals "in both letter and spirit". | However, he did agree that the fiscal framework was "essential" to delivering the Smith Commission proposals "in both letter and spirit". |
| Speaking on BBC Radio Scotland's Good Morning Scotland programme, Mr Swinney said: "I would be against there being a delay in the House of Lords because I think fundamentally we need to make progress on the Scotland Bill so that the Scottish Parliament can take its final decision on whether the bill is to be adopted before we get to the Scottish Parliament elections next May. | |
| "I'm making my position crystal clear. The fiscal framework has to be fair to the people of Scotland and consistent with the Smith Commission report before I will recommend to parliament that it gives its legislative consent to the Scotland Bill. | |
| "That is not a threat, that is simply a statement of the position of the Scottish government which has been expressed clearly to the UK government and to the people of our country." | |
| Scottish Labour MSP Iain Gray said a negotiated framework which met the framework of the Smith agreement was "eminently achievable". | Scottish Labour MSP Iain Gray said a negotiated framework which met the framework of the Smith agreement was "eminently achievable". |
| He said : "It is the job of the first minister and her deputy to get that deal for Scotland, and we have to assume that they are up to that job. They should stop wasting time with threats to walk away and refuse to accept the powers Scotland wants and is now entitled to. | He said : "It is the job of the first minister and her deputy to get that deal for Scotland, and we have to assume that they are up to that job. They should stop wasting time with threats to walk away and refuse to accept the powers Scotland wants and is now entitled to. |
| "In fact they should promise today to stay at the negotiating table until they get a deal, which is good for Scotland and protects Barnett, as the Smith Commission demanded." | "In fact they should promise today to stay at the negotiating table until they get a deal, which is good for Scotland and protects Barnett, as the Smith Commission demanded." |