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Queen's Speech 2015: Scotland to control 40% of tax and 60% of public spending Queen's Speech 2015: Scotland to control 40% of tax and 60% of public spending
(about 1 hour later)
The Scottish Parliament will receive new powers to raise 40% of taxes and decide about 60% of public spending, the Queen's Speech has confirmed.The Scottish Parliament will receive new powers to raise 40% of taxes and decide about 60% of public spending, the Queen's Speech has confirmed.
The Scotland Bill will allow Holyrood to set the thresholds and rates of income tax.The Scotland Bill will allow Holyrood to set the thresholds and rates of income tax.
A portion of VAT and the whole of Air Passenger Duty will also be under the Edinburgh parliament's control.A portion of VAT and the whole of Air Passenger Duty will also be under the Edinburgh parliament's control.
The Barnett Formula, which determines the money the devolved Scottish government receives, will be reduced.The Barnett Formula, which determines the money the devolved Scottish government receives, will be reduced.
The UK government said the new Scotland Bill would embody the Smith Commission agreement which was signed by the SNP, the Conservatives, Labour, the Liberal Democrats and the Scottish Greens in November last year.The UK government said the new Scotland Bill would embody the Smith Commission agreement which was signed by the SNP, the Conservatives, Labour, the Liberal Democrats and the Scottish Greens in November last year.
The promise of more powers to Holyrood followed voters rejecting Scottish independence by 55% to 45% in September's referendum.The promise of more powers to Holyrood followed voters rejecting Scottish independence by 55% to 45% in September's referendum.
The key elements of the Scotland Bill include:The key elements of the Scotland Bill include:
Reacting to the speech, SNP MP Pete Wishart said: "We will take a very keen interest as this [Scotland Bill] goes through - it was 100 days we were promised that this would be brought forward, we want to see that bill, we want it debated.
"The last parliament was a 'zombie parliament', it is certainly going to be a busy parliament this time with 21 bills and four massive constitutional bills to get through, so I think we are going to be working hard."
Before the Queen's Speech, SNP leader and Scotland's First Minister Nicola Sturgeon said she wanted the Scotland Bill to go much further than the Smith proposals.Before the Queen's Speech, SNP leader and Scotland's First Minister Nicola Sturgeon said she wanted the Scotland Bill to go much further than the Smith proposals.
She had been keen to see Holyrood given full control over National Insurance; the minimum wage; Corporation Tax; full control of welfare and employment and trade union law.She had been keen to see Holyrood given full control over National Insurance; the minimum wage; Corporation Tax; full control of welfare and employment and trade union law.
However, the Bill does not contain any of those demands.However, the Bill does not contain any of those demands.
What next for Scotland?What next for Scotland?
A new Scotland Bill will be based on recommendations made by the Smith Commission - the cross-party group formed after the independence referendum to look at what additional powers might be handed to Scotland.A new Scotland Bill will be based on recommendations made by the Smith Commission - the cross-party group formed after the independence referendum to look at what additional powers might be handed to Scotland.
But how were its foundations laid? Find out more...But how were its foundations laid? Find out more...
Ian Murray MP, shadow secretary of state for Scotland, said Labour were concerned about proposed changes to the Barnett Formula. In the Queen's Speech debate, the prime minister said he wanted to modernise and strengthen "our United Kingdom".
He said: "The tabling of the Scotland Bill is a significant moment. We will work to ensure the "Vow" made during the referendum is delivered in full, and that means keeping the Barnett Formula alongside more powers to make the Scottish Parliament one of the most powerful devolved Parliaments in the world. He told the House of Commons: "It [the Queen's Speech] includes bills on devolution for Scotland, Wales and Northern Ireland. These Bills will deliver on all of the promises given to people in each of the countries in our United Kingdom and will also ensure fairness for English voters."
"The test now for the Tories is if they can deliver the devolution Scotland wants without leaving Scotland worse off."
England-only MPs
The majority Conservative government said the purpose of the new legislation was to ensure that wherever you lived in the UK you would have a "government that is on your side and representing your interests".
In her address to peers and MPs, the Queen outlined that changes would be made to the rules of the House of Commons, which would ensure that only MPs representing English constituencies could vote on legislation affecting England alone.In her address to peers and MPs, the Queen outlined that changes would be made to the rules of the House of Commons, which would ensure that only MPs representing English constituencies could vote on legislation affecting England alone.
Her speech explained: "These changes will create fairer procedures to ensure that decisions affecting England, or England and Wales, can be taken only with the consent of the majority of members of parliament representing constituencies in those parts of our United Kingdom." And in a direct message to the SNP benches, Mr Cameron said: "If you want more taxes, more spending and more borrowing you can now introduce those measures in Scotland. It is time for you to stop talking and start acting."
He added that he was clear about what "full fiscal autonomy" would mean for Scotland: "Raising 100% of what you spend means asking Scottish people to pay almost an extra £10bn in taxes or make an almost extra £10bn in additional cuts by the end of this parliament. That is £5,000 of higher taxes or additional cuts for every single family in Scotland. That is the true price of the SNP."
The SNP's Westminster leader Angus Robertson responded to the prime minister's address by saying that his party would stand firm against the "relentless drive of Tory austerity".
He added: "Scotland did not vote for these cuts and we will work with others across parliament to prevent them.
"With Labour all over the place and each of their leadership candidates seemingly getting ready to race even further to the right, the SNP is the only real opposition to unfair Tory cuts in the House of Commons.
"At the general election, people in Scotland gave the SNP an unprecedented democratic mandate to put an end to the cuts agenda which is hurting people across our communities - and we will use this mandate to work with other progressive forces in parliament in Scotland's best interests."
On the government's devolution plans, acting Labour leader Harriet Harman warned Mr Cameron against pitting the English against the Scottish as she said he "shamefully" did in the general election campaign.
She added: "To get change which is fair and lasting, it must be done in a way which builds the broadest possible consensus.
"The prime minister must seek agreement and he must break his habit of divisiveness.
"Of course the SNP want to break up the union, they want people to have to choose between being Scottish and being British, but it would be utterly irresponsible to continue what he did so shamefully in the general election which was to set the English against the Scottish.
"No party, especially one that claims to be 'One Nation', should set the interests of a family in Gloucester against the interests of a family in Glasgow or Glamorgan."