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Scottish independence: Campaigners mark six months to vote Scottish independence: Campaigners mark six months to vote
(about 1 hour later)
The Scottish Parliament would have more powers to vary income tax and control of housing benefit under devolution proposals by Labour.The Scottish Parliament would have more powers to vary income tax and control of housing benefit under devolution proposals by Labour.
MSPs would be able to vary tax by up to 15p, giving them the option of restoring the 50p rate for top earners.MSPs would be able to vary tax by up to 15p, giving them the option of restoring the 50p rate for top earners.
Labour's proposals come as campaigners for and against independence mark six months until Scotland's referendum.Labour's proposals come as campaigners for and against independence mark six months until Scotland's referendum.
The Scottish government said only full independence would give Scotland the economic powers it needed.The Scottish government said only full independence would give Scotland the economic powers it needed.
Deputy First Minister Nicola Sturgeon said she and colleagues would continue to "make the positive case" for independence in the coming months. Deputy First Minister Nicola Sturgeon said she and her colleagues would continue to "make the positive case" for independence in the coming months.
Voters in Scotland go to the polls in exactly six months' time on 18 September, when they will be asked the "Yes/No" question: "Should Scotland be an independent country?"Voters in Scotland go to the polls in exactly six months' time on 18 September, when they will be asked the "Yes/No" question: "Should Scotland be an independent country?"
A Labour Party commission has been examining options for further devolution of powers to the Scottish Parliament as an alternative to independence.A Labour Party commission has been examining options for further devolution of powers to the Scottish Parliament as an alternative to independence.
Scottish Labour leader Johann Lamont said: "This is an important piece of work which we hope will answer people's desire to have a stronger, more accountable Scottish Parliament.Scottish Labour leader Johann Lamont said: "This is an important piece of work which we hope will answer people's desire to have a stronger, more accountable Scottish Parliament.
"The commission has worked hard to ensure that our proposals are consistent with Scotland remaining strong in the United Kingdom but also give us the flexibility to do things differently where we want to."The commission has worked hard to ensure that our proposals are consistent with Scotland remaining strong in the United Kingdom but also give us the flexibility to do things differently where we want to.
"This brings to an end two years of work where we have engaged widely with business, trade unions, academics and constitutional experts."This brings to an end two years of work where we have engaged widely with business, trade unions, academics and constitutional experts.
"We believe our proposals set out the most comprehensive package of devolution while also allowing Scotland the security and certainty of the United Kingdom.""We believe our proposals set out the most comprehensive package of devolution while also allowing Scotland the security and certainty of the United Kingdom."
The Scottish Parliament already has a limited power to vary income tax but it has never been used.The Scottish Parliament already has a limited power to vary income tax but it has never been used.
The Scotland Act 2012 meant increased powers to give Holyrood control of 10p worth of income tax at lower and upper rates, but MSPs will not be able to use them until 2016.The Scotland Act 2012 meant increased powers to give Holyrood control of 10p worth of income tax at lower and upper rates, but MSPs will not be able to use them until 2016.
Under Labour's plans, tax-varying powers would increase further, to 15p in the pound.Under Labour's plans, tax-varying powers would increase further, to 15p in the pound.
It is understood the party would hope to use it to increase the upper rate of tax to 50p in the pound if it decided such a move was necessary.It is understood the party would hope to use it to increase the upper rate of tax to 50p in the pound if it decided such a move was necessary.
But there would be no power to cut the upper rate, currently set at 45p, on its own.But there would be no power to cut the upper rate, currently set at 45p, on its own.
Labour is also proposing that attendance allowance, paid to over 65s with disabilities for help with personal care, be devolved to Holyrood, along with the work programme, under which public and private sector organisations are paid to help unemployed people into work.Labour is also proposing that attendance allowance, paid to over 65s with disabilities for help with personal care, be devolved to Holyrood, along with the work programme, under which public and private sector organisations are paid to help unemployed people into work.
Pensions and most benefits would continue to be shared across the UK but Holyrood would gain control of housing benefit.Pensions and most benefits would continue to be shared across the UK but Holyrood would gain control of housing benefit.
This would allow MSPs to scrap the under-occupancy penalty, which reduces housing benefit payments to council tenants deemed to have a spare bedroom. The policy's opponents have called it the "bedroom tax".This would allow MSPs to scrap the under-occupancy penalty, which reduces housing benefit payments to council tenants deemed to have a spare bedroom. The policy's opponents have called it the "bedroom tax".
But Labour does not propose to devolve corporation tax, national insurance, VAT, capital gains tax or air passenger duty.But Labour does not propose to devolve corporation tax, national insurance, VAT, capital gains tax or air passenger duty.
Marking the six months milestone, Ms Sturgeon said a No vote would mean handing power back to Westminster when polling stations closed.Marking the six months milestone, Ms Sturgeon said a No vote would mean handing power back to Westminster when polling stations closed.
She said: "The referendum is a choice between taking Scotland's future into Scotland's hands or leaving our future in the hands of an out-of-touch Westminster establishment.She said: "The referendum is a choice between taking Scotland's future into Scotland's hands or leaving our future in the hands of an out-of-touch Westminster establishment.
"The No campaign call themselves Project Fear but we have seen a move to Project Threat in recent days with increasingly over-the-top comments.""The No campaign call themselves Project Fear but we have seen a move to Project Threat in recent days with increasingly over-the-top comments."
Ms Sturgeon added: "We will continue to make the positive case, setting out how we can make the great wealth of Scotland work better and more fairly for everyone who lives here."Ms Sturgeon added: "We will continue to make the positive case, setting out how we can make the great wealth of Scotland work better and more fairly for everyone who lives here."
The Scottish Conservatives have set up their own commission, headed by Lord Strathclyde, the former leader of the House of Lords, to look at further powers for the Scottish Parliament.The Scottish Conservatives have set up their own commission, headed by Lord Strathclyde, the former leader of the House of Lords, to look at further powers for the Scottish Parliament.
In his speech to the Scottish Conservatives' conference at the weekend, Prime Minister David Cameron hinted at possible future devolution, though the commission has yet to announce firm proposals.In his speech to the Scottish Conservatives' conference at the weekend, Prime Minister David Cameron hinted at possible future devolution, though the commission has yet to announce firm proposals.
The Liberal Democrats have published a report arguing for "fiscal federalism", where Scotland would raise and spend most of its own taxes and borrow on its own terms.The Liberal Democrats have published a report arguing for "fiscal federalism", where Scotland would raise and spend most of its own taxes and borrow on its own terms.
The party has proposed scrapping the Act of Union between Scotland and England and replacing it with a declaration of federalism.The party has proposed scrapping the Act of Union between Scotland and England and replacing it with a declaration of federalism.