Further Powers For Holyrood

Lord Smith of Kelvin has unveiled the report of the Smith Commission in Edinburgh.

The Heads of Agreement on powers to strengthen the Scottish Parliament within the UK were drawn up by the nominees to the Commission from the five political parties represented at Holyrood.

The recommendations include:-

• The Parliament will be given the power to set income tax rates and bands on earned income and will retain all of the income tax raised in Scotland. 
• A share of VAT will be assigned to the Parliament and Air Passenger Duty will be fully devolved.
• The Parliament will be made permanent in UK legislation and given powers over how it is elected and run including the power to allow 16 and 17 year olds to vote.
• The Parliament will be given powers to create new benefits in devolved areas and make discretionary payments in any area of welfare. Also a range of other benefits that support older people, carers, disabled people and those who are ill will be fully devolved.

Lord Smith said: 

"Taken together, these new powers will deliver a stronger Parliament, a more accountable Parliament and a more autonomous Parliament.

"The recommendations, agreed between the Parties, will result in the biggest transfer of powers to the Parliament since its establishment.

"This agreement is, in itself, an unprecedented achievement. It demanded compromise from all of the parties. In some cases that meant moving to devolve greater powers than they had previously committed to, while for other parties it meant accepting the outcome would fall short of their ultimate ambitions. It shows that, however difficult, our political leaders can come together, work together, and reach agreement with one another. I pay tribute to them for doing just that."

Commenting on the publication of the Smith Commission report this morning on behalf of the Scottish National Party, Deputy First Minister John Swinney MSP said:

"The Scottish National Party took part in the Smith Commission in good faith, and we have been pleased to work with Lord Smith and the four other political parties to deliver some additional powers for the Scottish Parliament. We thank Lord Smith and his secretariat for their hard work and commitment.

"We welcome the new powers - as we support all progress for Scotland - and pledge to use them when they are in place in the best interests of the Scottish people. We also welcome the acknowledgement of the 'sovereign right' of the people of Scotland, and our ability to proceed to independence if we so choose.

"But the proposals clearly do not reflect the full wishes of the people of Scotland, and also fall far short of the rhetoric from the No campaign during the referendum. Then, Gordon Brown promised 'nothing less than a modern form of Scottish Home Rule' and 'as close to a federal state' as the UK can be. That was the context for the "extensive new powers" promised in the Vow.

"Regrettably, the Westminster parties were not prepared to deliver the powerhouse parliament the people of Scotland were promised - under these proposals, less than 30 per cent of our taxes will be set in Scotland and less than 20 per cent of welfare spending will be devolved to Scotland. That isn't Home Rule - it's continued Westminster rule.

"As polling has shown, two-thirds of people want Scotland to have all powers apart from defence and foreign affairs - Devo Max - including majorities among supporters of all political parties. 71 per cent want control of all taxation in Scotland, 75 per cent want control of the welfare and benefits system, 65 per cent want control of policy regarding the state pension, and 68 per cent want control of oil and gas revenues.

"Most significantly, the proposals do not include the job-creating powers that Scotland so badly needs to get more people into work and grow the economy, or welfare powers to tackle in-work poverty.

"Control of employer national insurance contributions, tax incentives for research and development, the personal allowance to lift more low earners out of tax and make work pay, corporate taxation, child and working tax credits, and the ability to shape a welfare system that helps rather than hinders the path to employment - these all stay with Westminster.

"This was a missed opportunity to devolve the welfare system in order to help build a fairer, more prosperous society - as the Scottish Council for Voluntary Organisations and many other expert organisations in civic Scotland called for - and the minimum wage, as the STUC wanted.

"We will use all the new powers Scotland gets wisely, to improve the lives of the people we serve. 

"But the opportunity of the Commission was to make this the strongest package of self-government possible short of independence - which is effectively what the people voted for in the referendum. Unfortunately, this falls short because it could only go as far as the Westminster parties were prepared to go.

"Next year's General Election offers the people of Scotland the opportunity to have their say, and the SNP will propose improvements to the package for which we will seek popular support in May. The Westminster parties have now gone as far as they are ever prepared to go in terms of powers for Scotland -and it is not as far as they indicated during the referendum. They have drawn their final line in the sand - and it is on the wrong side of majority opinion in Scotland.

"The General Election enables the voice of the people to be heard over the powers that Scotland needs to boost employment and tackle inequality - and we look forward to their verdict."

The Scottish Greens say the proposed package of powers outlined by the Smith Commission today will fall short of many people's expectations, but if used wisely could help protect people from UK austerity and welfare cuts.

Patrick Harvie MSP said:

"This package falls short of the complete autonomy many hoped for but it does have potential. If these powers are delivered as promised we must use them to close the gap between rich and poor, overcome the UK's austerity agenda, and invest in the skills and green infrastructure that will sustain our economy.

"There will now be no hiding room on the troubling issue of fracking. Scotland will look to its own government to protect communities from this unwanted and destructive new wave of fossil fuel extraction."

Councillor Maggie Chapman said:

"While this package of powers is welcome there is much more we had hoped for, such as the ability to pursue wealth taxes, to enforce a living wage, full devolution of welfare, trades union rights and employment law. As long as these issues are decided at UK level it remains essential that Green voices are heard at Westminster.

"The Scottish Greens engaged constructively in this process and we continue to call for the public to have a say in the delivery of new powers. We will play our part in scrutinising the proposals and making sure Westminster delivers meaningful devolution."

The Scottish Conservatives have endorsed the Smith Commission's new blueprint.

Leader Ruth Davidson MSP said:
 
"Lord Smith and all the parties who have been negotiating in these talks are to be congratulated for coming up with what is a durable, radical and practical set of recommendations that will make Scotland a better place.
 
"We give them our firm support.

"Our commitment at the start of these negotiations was that our Strathclyde Commission plans would be a 'floor not a ceiling' on our ambitions.
 
"We have delivered on that pledge. This is a package designed, built, and delivered by Scottish Conservatives and Scottish Conservative ideas.
 
"The Strathclyde Commission has become the foundation for the Scottish Parliament's new financial future.
 
"We have now added to that with a real and lasting package on welfare to ensure we will now have one of the strongest parliaments of its kind in the world."

Ruth added:
 
"This is a plan which, for the first time since devolution, brings real accountability and real responsibility to the Scottish Parliament.
 
"Future Scottish governments will have to look Scottish taxpayers in the eye when they are spending their money.
 
"Successive administrations have been able to claim credit for public spending, and then blame Westminster when it runs out.
 
"That now ends. The powers are there to do as they please.

"No more excuses, no more grievance politics. No longer can the Nationalists peddle their agenda of blaming everything on Westminster."

Ruth also predicted the deal could herald an end to the constitutional division of the last seven years.
 
She said:
 
"This deal today will bring real choice back to Scottish politics between those of us who want to lower the taxes of Scotland's workers and let them keep more of the money they earn, and those who want to charge our working men and women more for irresponsible government spending.
 
"That is the real divide in Scottish politics, not the old choice of Nationalist versus Unionist.

On the substantial new welfare plans, Ruth added:

"The UK welfare state is one of the bedrocks for our country and that remains the case, but Scotland will be given the flexibility to decide on new benefits to meet our own particular needs.

"At the same time, the basic building blocks of our UK remain firmly intact - your pension, one jobs market - and a currency that works for us all."
 
Ruth concluded:

"This deal is very close to the Strathclyde Commission report the Scottish Conservatives set out in June, with a few notable enhancements.
 
"Both Annabel Goldie and Professor Adam Tomkins, who served on that commission, represented the Scottish Conservatives in these talks and it is a testament to their hard work and dedication that this deal has been done to deliver for the people of Scotland. 
 
"I thank them for their tremendous efforts.

"Throughout the referendum campaign there was a clear demand for constitutional change from voters on both sides of the debate.

"Today's agreement on more powers delivers on that, giving Scotland a stronger parliament within the UK.

"Let's now get on with making this plan work to build a fairer, more prosperous society, in Scotland and right across the United Kingdom."

Leader of the Scottish Liberal Democrats Willie Rennie has today hailed the most significant transfer of powers to the Scottish Parliament since its creation as the 'Vow Max'.

Speaking after Lord Smith announced the new package of powers in Edinburgh today, Mr Rennie said: 

"Today is a good day for Scotland, for home rule and for the Liberal Democrats.

"We have secured an all-party agreement for a bold package of new powers. We made the weather on more powers from the beginning. From launching our Campbell report in 2012 to making the case for welfare in the negotiations.
 
"These powers create a Scottish welfare system and give the Scottish Parliament the financial muscle it needs.
 
"With £20billion tax powers and £2.5billion new welfare powers this is a big deal for Scotland.
 
"As former Secretary of State for Scotland Michael Moore was critical to the success of the negotiations. As former party leader Tavish Scott added the essential ingredient to secure this all party agreement.  

"Liberal Democrats argued for these home rule powers - and we won the case inside the Smith Commission.
 
"You might call this big deal Vow Max as this all party agreement delivers on the Vow, and more."

Speaking at the launch of the Smith Commission this morning, Labour MSP Iain Gray, said: 

"Today is a promise kept for the people of Scotland. Before the referendum we made a vow which today we honour. A stronger Scottish Parliament as part of the United Kingdom. 

"An agreement which respects the sovereign will of the Scottish people. A transformative package of measures to deliver a powerhouse parliament."

Margaret Curran MP, Labour's Shadow Scottish Secretary said: 

"Today we respond to the call for change that we heard on 18th September with extensive new powers for the Scottish Parliament. This is a promise kept and an agreement delivered. There shall be a stronger Scottish Parliament.
 
"Politics in Scotland has changed forever and people want power close to them. This agreement today meets that demand with extensive new powers over tax, welfare and job creation being passed to the Scottish Parliament.
 
"For the past two years our country has divided along yes and no lines. Today marks an important moment, as Scotland's five political parties come together – for us to look forward. Labour will deliver these new powers in our first Queen’s speech next May. More power is now in Scotland's hands and it is for all of us to work together to create the better country we want."
 
Interim Leader of the Scottish Labour Party, Anas Sarwar MP, said: 

"Today we reached an agreement, not in our own interests but in the interests of the Scotland and the people we serve. This is the right thing to do.

"People wanted more decisions taken closer to home and that is what we have delivered.

"Today is a good day for Scotland and a good day for the Scottish Parliament"