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Osborne: Holyrood 'would cut taxes' | Osborne: Holyrood 'would cut taxes' |
(35 minutes later) | |
Scotland will use new devolved powers to cut, rather than increase, its taxes, the chancellor has predicted. | Scotland will use new devolved powers to cut, rather than increase, its taxes, the chancellor has predicted. |
George Osborne also told the Conservative Party conference that commitments made to Scotland ahead of the independence referendum would be honoured in full. | George Osborne also told the Conservative Party conference that commitments made to Scotland ahead of the independence referendum would be honoured in full. |
The Tories have proposed fully devolving income tax to the Scottish Parliament. | The Tories have proposed fully devolving income tax to the Scottish Parliament. |
But Labour only wants Holyrood to be responsible for a portion of the tax. | But Labour only wants Holyrood to be responsible for a portion of the tax. |
The two parties also disagree over whether Scottish MPs should continue to be allowed to vote on English matters at Westminster. | The two parties also disagree over whether Scottish MPs should continue to be allowed to vote on English matters at Westminster. |
Mr Osborne told delegates at the Tory conference in Birmingham: "When Scotland is rightly given greater control over its taxes, I suspect the people of Scotland will choose to put them down, not up. And let me be clear - we will honour in full our commitments to Scotland. | Mr Osborne told delegates at the Tory conference in Birmingham: "When Scotland is rightly given greater control over its taxes, I suspect the people of Scotland will choose to put them down, not up. And let me be clear - we will honour in full our commitments to Scotland. |
"We are also absolutely clear that as Scots get more control over their taxes, it is right that Northern Ireland, Wales and England should get more control over their taxes and their laws too." | "We are also absolutely clear that as Scots get more control over their taxes, it is right that Northern Ireland, Wales and England should get more control over their taxes and their laws too." |
Mr Osborne also pledged that the Conservatives would introduce a two-year freeze on benefits - excluding pensions, disability benefits and maternity pay - paid to people of working age if the party wins the next election. | Mr Osborne also pledged that the Conservatives would introduce a two-year freeze on benefits - excluding pensions, disability benefits and maternity pay - paid to people of working age if the party wins the next election. |
And he said an extra £25bn of permanent savings would be needed to eliminate the UK's deficit. | |
Public consultation | Public consultation |
The former Labour trade minister Lord Digby Jones had earlier told the conference it would be an "unacceptable farce" if Scottish MPs could vote on English taxation, but English MPs could not do the reverse. | The former Labour trade minister Lord Digby Jones had earlier told the conference it would be an "unacceptable farce" if Scottish MPs could vote on English taxation, but English MPs could not do the reverse. |
Labour leader Ed Miliband has called for a public consultation on the issue, followed by a constitutional convention after next year's general election. | Labour leader Ed Miliband has called for a public consultation on the issue, followed by a constitutional convention after next year's general election. |
On Sunday, the prime minister vowed to ensure Scotland would get promised new powers under any government, even if Labour wins in May. | On Sunday, the prime minister vowed to ensure Scotland would get promised new powers under any government, even if Labour wins in May. |
And he said he wanted to adapt the voting procedures in Westminster for English-only and English and Welsh issues rather than setting up an English Parliament. | And he said he wanted to adapt the voting procedures in Westminster for English-only and English and Welsh issues rather than setting up an English Parliament. |
Mr Cameron told the BBC's Andrew Marr Show: "We need to do that, obviously, not just with English laws but if the Scots are going to have, as we believe they should, the right to set income tax rates you need arrangements in the UK Parliament to make sure there is fairness there as well. | Mr Cameron told the BBC's Andrew Marr Show: "We need to do that, obviously, not just with English laws but if the Scots are going to have, as we believe they should, the right to set income tax rates you need arrangements in the UK Parliament to make sure there is fairness there as well. |
"Either there will be an outbreak of common sense by my political opponents and cross-party consent - I doubt it, I suspect it will be the Conservative Party putting forward at the next election a balanced programme of devolution for both Scotland and the rest of the United Kingdom, and when we win our majority we will put that into place in tandem and at the same time." | "Either there will be an outbreak of common sense by my political opponents and cross-party consent - I doubt it, I suspect it will be the Conservative Party putting forward at the next election a balanced programme of devolution for both Scotland and the rest of the United Kingdom, and when we win our majority we will put that into place in tandem and at the same time." |
Mr Cameron, Mr Miliband and Lib Dem leader Nick Clegg all signed a pledge ahead of the referendum vowing to devolve more powers to Scotland if voters rejected independence. | Mr Cameron, Mr Miliband and Lib Dem leader Nick Clegg all signed a pledge ahead of the referendum vowing to devolve more powers to Scotland if voters rejected independence. |
The first part of the pledge, which was published in the Daily Record newspaper, promised "extensive new powers" for the Scottish Parliament "delivered by the process and to the timetable agreed" by the three parties. | The first part of the pledge, which was published in the Daily Record newspaper, promised "extensive new powers" for the Scottish Parliament "delivered by the process and to the timetable agreed" by the three parties. |
The second said the leaders agreed that "the UK exists to ensure opportunity and security for all by sharing our resources equitably", while the third "categorically states" that the final say on funding for the NHS will lie with the Scottish government "because of the continuation of the Barnett allocation for resources, and the powers of the Scottish Parliament to raise revenue". | The second said the leaders agreed that "the UK exists to ensure opportunity and security for all by sharing our resources equitably", while the third "categorically states" that the final say on funding for the NHS will lie with the Scottish government "because of the continuation of the Barnett allocation for resources, and the powers of the Scottish Parliament to raise revenue". |
A cross-party commission headed by Lord Smith of Kelvin has subsequently been tasked with delivering new powers to the Scottish Parliament. | A cross-party commission headed by Lord Smith of Kelvin has subsequently been tasked with delivering new powers to the Scottish Parliament. |
The SNP has agreed to participate in the commission, with its deputy leader Nicola Sturgeon - who is expected to succeed Alex Salmond as party leader and first minister in November - saying the party would work with the other parties "in good faith". | The SNP has agreed to participate in the commission, with its deputy leader Nicola Sturgeon - who is expected to succeed Alex Salmond as party leader and first minister in November - saying the party would work with the other parties "in good faith". |
Speaking on Saturday, she said: "Between the 45% who voted 'Yes' and a sizeable number who voted 'No' because they thought that was the route to more powers, there is a powerful public majority out there for change. | Speaking on Saturday, she said: "Between the 45% who voted 'Yes' and a sizeable number who voted 'No' because they thought that was the route to more powers, there is a powerful public majority out there for change. |
"In the few days before the referendum the language being used was the language of substantial radical change - devo max, something close to federalism, home rule. That is the expectation that has been generated. | "In the few days before the referendum the language being used was the language of substantial radical change - devo max, something close to federalism, home rule. That is the expectation that has been generated. |
"Unless we end up with a package that is substantial the backlash against the Westminster parties is going to be severe." | "Unless we end up with a package that is substantial the backlash against the Westminster parties is going to be severe." |