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| Scottish parliament to get control over income tax and welfare spending | Scottish parliament to get control over income tax and welfare spending |
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| Scottish ministers are to be given direct control over billions of pounds of income tax and welfare benefits in far-reaching reforms due to include housing, winter fuel payments and air passenger duty. | Scottish ministers are to be given direct control over billions of pounds of income tax and welfare benefits in far-reaching reforms due to include housing, winter fuel payments and air passenger duty. |
| High level talks to agree the full package of new powers continued late into Wednesday as negotiators from all the main parties at Holyrood thrashed out the last details of a deal due to be revealed in Edinburgh on Thursday morning. | High level talks to agree the full package of new powers continued late into Wednesday as negotiators from all the main parties at Holyrood thrashed out the last details of a deal due to be revealed in Edinburgh on Thursday morning. |
| In a significant switch backed by Ed Balls, the shadow chancellor, and party leader Ed Miliband, Labour has dropped its opposition to allowing the Scottish parliament to set different tax rates to the rest of the UK after watching support for the party plummet. | In a significant switch backed by Ed Balls, the shadow chancellor, and party leader Ed Miliband, Labour has dropped its opposition to allowing the Scottish parliament to set different tax rates to the rest of the UK after watching support for the party plummet. |
| But in a concession demanded by Balls, Westminster will still have overall control over the personal allowance – the figure at which income tax starts and which now stands at £10,000-a-year – and the tax rates on unearned income such as interest on savings and share dividends. | But in a concession demanded by Balls, Westminster will still have overall control over the personal allowance – the figure at which income tax starts and which now stands at £10,000-a-year – and the tax rates on unearned income such as interest on savings and share dividends. |
| The deal is also expected to allow Scottish ministers to control the housing benefit elements of the new universal credit system, potentially worth around £1.7bn. | The deal is also expected to allow Scottish ministers to control the housing benefit elements of the new universal credit system, potentially worth around £1.7bn. |
| The powers, agreed during secret talks overseen by Lord Smith of Kelvin and officials from the Treasury, are expected to be fast-tracked through Westminster next year. They had been brokered by former prime minister Gordon Brown in the closing stages of the Scottish independence referendum campaign. | The powers, agreed during secret talks overseen by Lord Smith of Kelvin and officials from the Treasury, are expected to be fast-tracked through Westminster next year. They had been brokered by former prime minister Gordon Brown in the closing stages of the Scottish independence referendum campaign. |
| Labour has been forced to give ground on income tax, devolving air passenger duty and on allowing Holyrood full control over Scottish parliament and council elections – including allowing 16- and 17-year-olds full voting rights – after a surge in support for the Scottish National party. | Labour has been forced to give ground on income tax, devolving air passenger duty and on allowing Holyrood full control over Scottish parliament and council elections – including allowing 16- and 17-year-olds full voting rights – after a surge in support for the Scottish National party. |
| But as Labour, the Tories and the Lib Dems edged closer to a deal with the SNP and Scottish Greens, a controversial plan to devolve abortion law to Scotland, ending a Britain-wide approach to cut-off dates on terminations, caused divisions. | But as Labour, the Tories and the Lib Dems edged closer to a deal with the SNP and Scottish Greens, a controversial plan to devolve abortion law to Scotland, ending a Britain-wide approach to cut-off dates on terminations, caused divisions. |
| Backed by Labour negotiators, leading women’s groups including Abortion Rights and Engender Scotland submitted formal protests about the proposal, leading to the plan being dropped in the final stages. Instead the commission is expected to state on Thursday it was minded to devolve abortion law, but to agree that further work is needed. . | |
| The Scottish Greens, the SNP and Lord Smith support devolving abortion legislation and are understood to have argued that Holyrood has taken a liberal, pro-equality stance on all other policies on women’s health and equalities. | The Scottish Greens, the SNP and Lord Smith support devolving abortion legislation and are understood to have argued that Holyrood has taken a liberal, pro-equality stance on all other policies on women’s health and equalities. |
| But critics were furious, claiming that no evidence had been found to justify the move and that there had been no public debate before it was tabled by the Scottish Greens. The groups also said it risked giving anti-abortion campaigners the power to restrict abortions and creating a two-tier system in the UK. | |
| Maria Fyfe, a leading pro-choice campaigner and former Labour MP for Glasgow Maryhill, said there had been an astonishing lack of consultation on the proposal. | Maria Fyfe, a leading pro-choice campaigner and former Labour MP for Glasgow Maryhill, said there had been an astonishing lack of consultation on the proposal. |
| “There is a huge danger that this will increase attacks on abortion rights if the legislation is devolved,” she said. “Take the likes of Brian Souter, a big funder of the SNP, who strongly opposes abortion rights and funded an anti-gay rights campaign. How can we not be suspicious?” | “There is a huge danger that this will increase attacks on abortion rights if the legislation is devolved,” she said. “Take the likes of Brian Souter, a big funder of the SNP, who strongly opposes abortion rights and funded an anti-gay rights campaign. How can we not be suspicious?” |
| Carolyn Leckie, a former midwife and senior figure in Women for Independence, said devolving abortion would allow the pro-choice movement to make Scottish abortion law more progressive and more flexible than the rest of the UK. The Smith commission’s decision to allow Scotland to set its own air passenger duty to stimulate business travel and tourism will also enfuriate airports in northern England and undermine efforts to cut carbon emissions. | Carolyn Leckie, a former midwife and senior figure in Women for Independence, said devolving abortion would allow the pro-choice movement to make Scottish abortion law more progressive and more flexible than the rest of the UK. The Smith commission’s decision to allow Scotland to set its own air passenger duty to stimulate business travel and tourism will also enfuriate airports in northern England and undermine efforts to cut carbon emissions. |
| Newcastle airport protested about the SNP’s proposal to cut and then abolish APD during the referendum campaign, fearing it would cut passenger numbers. The measure was backed by Ryanair and British Airways. | Newcastle airport protested about the SNP’s proposal to cut and then abolish APD during the referendum campaign, fearing it would cut passenger numbers. The measure was backed by Ryanair and British Airways. |
| Labour was forced to drop proposals to take full control over housing benefit because it is an integral part of the universal credit single welfare payment. Instead Holyrood is expected to be allowed to vary housing costs, the frequency of payments and also direct payments to either the claimant or housing provider. | Labour was forced to drop proposals to take full control over housing benefit because it is an integral part of the universal credit single welfare payment. Instead Holyrood is expected to be allowed to vary housing costs, the frequency of payments and also direct payments to either the claimant or housing provider. |
| Labour sources said these concessions proved the party was listening to Scottish voters, who came close to backing independence. “We needed to show good faith, and show we understand that people voted for change,” said one. | Labour sources said these concessions proved the party was listening to Scottish voters, who came close to backing independence. “We needed to show good faith, and show we understand that people voted for change,” said one. |
| The SNP is expected to accept all the Smith proposals, but will insist on Thursday that Scotland needs far greater autonomy, particularly over taxation and welfare. | The SNP is expected to accept all the Smith proposals, but will insist on Thursday that Scotland needs far greater autonomy, particularly over taxation and welfare. |