Referendum anniversary: Time to move on, says PM

‘More Scots voted to keep our kingdom united than have ever voted for any party in any election in Scottish history’ – Prime Minister David Cameron

Speaking one year after the people of Scotland voted to remain part of the United Kingdom, the Prime Minister today said he is focussed on delivering devolution so that the debate can move on from what powers the Scottish Parliament should have, to how they are used to better the lives of the people of Scotland.

He added that the UK government will shortly table an amendment to the Scotland Bill to put beyond doubt that Holyrood is here to stay.

The Prime Minister said:

One year ago Scotland’s majority spoke.

More Scots voted to keep our kingdom united than have ever voted for any party in any election in Scottish history.

They voted decisively for a powerful Scottish Parliament within a strong and secure United Kingdom. We listened.

So let me be crystal clear: Scottish devolution is woven into the very fabric of our United Kingdom.

We will table an amendment to the Scotland Bill so there is absolutely no doubt: Holyrood is here to stay.

Alex Salmond, Nicola Sturgeon and I signed the Edinburgh Agreement which pledged we would all respect the outcome of last year’s momentous vote.

We all agreed – as do the Scottish public – that the independence referendum should be a ‘once in a generation’ or a ‘once in a lifetime’ event.

So now it is time to move on.

Some may want to obsess about separation.

But I am focussed on delivering devolution so that the debate can move on from what powers the Scottish Parliament should have, to how they are used to better the lives of the people of Scotland.

And today, on the anniversary of that historic vote, let me repeat: we are delivering a new, accountable and permanent Scottish Parliament. Holyrood will be one of the most powerful devolved Parliaments in the world.

Scotland’s changing …

2.5 million Scottish households to receive leaflet explaining devolution changes

A leaflet explaining the changes to devolution as the UK Government prepares to transfer powers to Holyrood will begin arriving through letterboxes in Scotland this week.

The 8-page Scotland’s Changing leaflet (see below) will explain the new powers as well as the benefits people in Scotland retain as part of the UK, including the pound, pensions and passports.

It will be sent to every one of the 2.5 million households across the country.

Find out more about Our United Future

The leaflet clearly explains which powers will be devolved and reserved following the Smith Commission and the earlier Scotland Act 2012. Powers going to the Scottish Parliament include income tax, some elements of welfare and choices over new taxes such as Airport Passenger Duty and Stamp Duty.

The Smith Commission recommended action to raise public awareness of devolution and this is part of the UK Government’s response to that challenge.

Scottish Secretary Alistair Carmichael said:

“Scotland is changing for the better, with new powers coming to the Scottish Parliament.

These powers will have an impact on every person living in Scotland and it is important that we all know what they are and what they mean for us.

From Monday, households across Scotland will receive a leaflet, direct to their door – and that leaflet will spell out the facts.

The Scottish Parliament will soon be given power over the rates of income tax, welfare provision with a starting budget of more than £2.5 billion, and the ability to give the vote to 16 and 17 year olds in Holyrood and local government elections.

Alongside borrowing powers, and continued control over health, education, housing, public transport and so much more, the Scottish Parliament is set to become one of the most powerful devolved parliaments not just in Europe, but in the entire world.

At the same time, Scotland will keep the many benefits which come as part of the UK. We’ll keep our UK pound, our UK passport and our UK pensions. We’ll also continue to benefit from a single jobs market, a single defence system and a single, strong and fast-growing UK economy.

This is good news for Scotland. A united future, built to last.”

Scotland_s_Changing_info_leaflet

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A family divided: Sturgeon urges Cameron to think again

Bedroom tax could only be abolished with consent of the Westminster Government

Draft legislation which will see ‘an unprecedented rise in the powers of the Scottish Parliament’ was published by the UK Government today – but the Scottish Government says an ‘urgent rethink’ is needed if the paper is to deliver all the Smith Commission proposals.

A Command Paper including the 44 draft clauses sets out the new powers which will come to Holyrood following the agreement reached by the Smith Commission last year – the first time all of Scotland’s main political parties have agreed what the next chapter of devolution should look like.

Prime Minister David Cameron said: “In September the people of Scotland came out in record numbers to decide the future of the United Kingdom.

“They voted clearly and decisively to keep our family of nations together. But a ‘no’ vote did not mean ‘no change’.

“The leaders of the other main political parties and I promised extensive new powers for the Scottish Parliament – a vow – with a clear process and timetable. And now, here we have it: new powers for Scotland, built to last, securing our united future.

“I pay tribute to the leadership of Robert Smith for this historic agreement and with all five of Scotland’s main political parties at the table, it was a devolution first.”

The clauses form the final part of the promise made to the people of Scotland on additional devolution and were published ahead of the Burns Night deadline.

As a result, Holyrood will become one of the most powerful devolved parliaments in the world. It will be responsible for more than 60% of Scottish spending while retaining the safety and security of being part of the wider UK.

Examples of Holyrood’s new powers will include new income tax bands, areas of welfare, some employment programmes, further borrowing powers and air passenger duty, as well as receiving a proportion of VAT. Other elements of the agreement include stating in law that the Scottish Parliament and Scottish Government are permanent institutions.

The UK and Scottish Governments have also taken steps to produce a Section 30 order which will allow 16 and 17 years olds to vote in the Scottish Parliament elections in 2016.

The draft clauses will be the subject of debate at both the UK and Scottish Parliaments. The cross-party nature of the agreement means whoever forms the next UK Government after the General Election will turn this draft legislation into law – a new Scotland Act.

Scottish Secretary Alistair Carmichael said: “The UK Government has kept its end of this historic bargain and delivered the next chapter in devolution for Scotland. For the first time, it has backing across the political spectrum with all of Scotland’s main parties committed to the package of new powers for Scotland. That means this is an agreement which is truly built to last.

“It also strikes the right balance of powers for Scotland as part of the UK. That is what the majority of people want to see and these new powers will create a stronger Scotland and a stronger UK. The Scottish Parliament will have a range of new powers in addition to the significant ones for which it already has responsibility.

“That means choices which can reflect distinctive Scottish needs while keeping the safety and security of a wider UK in key areas such as pensions and defence.”

Chief Secretary to the Treasury Danny Alexander said: “”The people of Scotland voted to stay in the UK because we wanted to ensure that we remained part of one of strongest unions the world has ever known. As promised, the UK has today delivered unprecedented new powers for Scotland, which make it one of the most powerful devolved administrations in the OECD, but underpinned by a robust framework that ensures we, the people of Scotland, can continue to contribute to and benefit from the UK’s economic strength.

“The next steps are clear: the Scottish Government and Parliament will soon have these powers, and it needs to ensure that it implements them in a way that works for Scotland, including by looking at further devolution within the country, as recommended by Lord Smith.

“Devolution doesn’t just mean the flow of powers from one Parliament to another. Devolution is about empowering our regions and our communities across Scotland and the UK.”

While the Westminster unionist parties have welcomed the draft legislation the mood at Holyrood is markedly different – the SNP government sees the paper as a ‘significant watering down’ of the Smith Commission proposals.

First Minister Nicola Sturgeon says the UK Government will hold a veto over key devolved powers proposed by the Smith Commission, including the ability to abolish the bedroom tax, under the proposals published today. She said an urgent rethink was required across several of the legislative clauses outlined by the Prime Minister if the new legislation is to deliver on both the letter and the spirit of the Smith Commission proposals.

Ms Sturgeon said aspects of the legislation represented progress but proposals in areas such as welfare, employment support and capital borrowing appeared to be a “significant watering down” of what was promised by the Smith Commission.

The First Minister highlighted three key areas that must be addressed immediately by the UK Government if the legislation is to meet the spirit and the content of the agreement set out by Lord Smith:

The welfare provisions do not enable the Scottish Parliament to create new benefit entitlements across devolved areas and require the approval of UK ministers for any changes to Universal Credit – including the action needed to end the bedroom tax.
Proposals for the full devolution of unemployment support fall well short of what was promised, hampering efforts to address joblessness by devolving only a section of the current support network and leaving important levers in the hands of UK ministers.
Scotland would be tied to the UK’s current austerity fiscal framework, and under the plans set out could see capital borrowing powers replace – and not augment – the existing capital grant.

The First Minister said: “Throughout this process, I have been clear that, despite it falling short of the real home rule powers we need to create jobs and tackle inequality, the Scottish Government would be a constructive participant, working with the UK Government to bring forward what Lord Smith recommended.

“The legislation published today does not represent the views of the Scottish Government, but it does represent some progress. However, too much of what the Prime Minister has set out imposes restrictions on the recommended devolved powers and would hand a veto to UK ministers in key areas.

“For example, the proposals on welfare do not allow us to vary Universal Credit without the permission of the UK Government. That means – under the current proposals – we will not have the independence to take action to abolish the bedroom tax.

“At the same time, the power argued for by stakeholders to create new benefit entitlements in any devolved area has simply not been delivered, while the command paper makes clear that, pending devolution of disability support, the roll-out of personal independence payments and the cut to spending on disability benefits will continue.

“This cannot, under any interpretation, represent the meaningful progress on the devolution of the powers we need to design a social security system that meets Scotland’s needs.

“The support for unemployed people also falls short of what Lord Smith recommended, with the provisions set out today narrowly focused on existing schemes.

“And the paper confirms that the Scottish Government will still have to work within the framework of austerity being imposed by the UK Government. It also suggests that Scotland’s capital grant could be replaced by borrowing powers and not augmented by them as was clearly the intention of the Smith proposals.

“In these crucial areas the clauses set out today appear to be a significant watering down of what was promised by the Smith Commission and need an urgent rethink by the UK Government.”

Ms Sturgeon continued: “We remain committed to this process, despite the difficulties we have experienced in getting information in a timely fashion and we will continue to work with the UK Government and other stakeholders to ensure that the changes are made ahead of the Bill being taken through Westminster.

“Ultimately, however, the decision on whether the Smith proposals go far enough in delivering the powers we need to create prosperity, tackle inequality and protect our public services will be for the people of Scotland to take.”

Clearly, there’s still some serious talking to be done.

Keir welcomes airports’ submission

‘Case for devolution has been made – Labour must drop opposition’

The SNP has today welcomed a joint submission by Scotland’s three main airports to the Smith Commission, calling for Air Passenger Duty (APD) to be devolved to the Scottish Parliament ahead of next year’s General Election.

The submission ‘A Case for APD’ – signed by Amanda McMillan, Managing Director at Glasgow Airport, Gordon Dewar Chief Executive at Edinburgh Airport and Carol Benzie, Managing Director, Aberdeen International Airport – backs the Scottish Government position.

The airports also say they “simply do not understand the foundation” of Labour’s opposition to the devolution of APD.

Their submission states: “Reducing APD will incentivise more direct travel from Scotland, and will likely reduce the need to transfer through European airports to avoid paying APD. We simply do not understand the foundation of the Scottish Labour Party’s concerns here.”

“Unless APD is devolved, people travelling to and from Scotland – who in most cases fly due to the lack of feasible alternatives – will continue to face some of the highest levels of taxation in Europe, which is clearly a disincentive to travel.”

SNP MSP for Edinburgh Western Coin Keir said this submission provided Labour with an opportunity to drop its opposition to the devolution of APD and try to prove that Labour in Scotland was controlled in Scotland and not in Westminster.

Mr Keir, the MSP for Edinburgh Airport, said: “This submission to the Smith Commission by Scotland’s three leading airports is very welcome indeed – it backs up our position and dismantles Labour’s weak proposals.

“The case for the devolution of APD has been made – today’s submission from the airports has demolished any remains of Labour’s threadbare argument against it. Labour in Scotland could start to show that it is Scotland, not Westminster, in control by dropping its opposition and supporting the devolution of APD.

“Assuming this common sense submission is taken forward by the Smith Commission in its proposals – the pressure will be on David Cameron and the Westminster system to act immediately and devolve the powers over APD at once.”

One month on: delivering ‘The Vow’

Scottish Secretary Alistair Carmichael says pledge to devolve further powers to Scottish Parliament is on track

One month on from Scotland’s decision to remain part of the UK, Scottish Secretary Alistair Carmichael has said the UK Government has hit the ground running on its pledge to devolve further powers to the Scottish Parliament.

He called on First Minister-in-waiting Nicola Sturgeon to adopt a similar approach and show real leadership in making things happen, and said it was vital that people in Scotland accept the result of the fair, legal and decisive referendum and move on in the best interests of all of Scotland.

On 18 September 2,001,926 people in Scotland voted for Scotland to stay in the UK, nearly 400,000 more than voted for the independence option. The turnout, at almost 85%, was the largest in UK election history.

Mr Carmichael said: “Nicola Sturgeon will take the reins at a time where most Scots are moving on with their lives after the long and passionate referendum campaign. We have hit the ground running and are already working hard to deliver the further devolution which we promised.

“During the referendum campaign we set out a timetable for the devolution of further powers and we’re not only meeting it, we’re beating it.

“I would call on Nicola Sturgeon to show genuine leadership and accept the result. There have already been cries of reneging on the more powers vow even though the Smith Commission hasn’t even proposed anything yet. The betrayal bandwagon is already getting dusted down. This is simply not good enough. The Scottish people have made their democratic decision and it must be respected.

“I appreciate the emotional intensity of the campaign but the UK Government respected the victory of the nationalists in 2011, recognised the will of the Scottish people and took measures to devolve the power to hold the referendum. Both sides signed the Edinburgh Agreement in good faith and it is that good faith which we need to see from the new First Minister.

“The referendum gave us a decisive result. This was the most democratic decision we have ever made in Scotland. More than 3.6 million people voted. One question was put to the electorate and the overwhelming majority of people in Scotland answered by saying they want to remain part of the United Kingdom.

“We are now working to build a stronger Scottish Parliament. Calling for a second referendum and reflecting on what could have been is entirely inappropriate. The Scottish Government wanted to divide the United Kingdom but if they carry on as they have for the past month then they risk dividing Scotland.”

Scotland’s deputy first minister Nicola Sturgeon said: “The Scottish government intends to play a full and constructive part in the process to deliver substantial new powers for the Scottish Parliament.

“This will include working to ensure that the outcome meets the high expectations of the people of Scotland as expressed in the referendum, given the various promises of ‘devo max’, ‘near federalism’ and ‘home rule’ which were made.”

She said that the UK parties were falling out over more powers for Holyrood and introducing Englishvotes for English laws’ at Westminster.

“In the month since the referendum, we have produced our submission to the Smith Commission, continued our engagement with the people of Scotland on more powers and witnessed a phenomenal rise in SNP membership as more and more people realise that it is the SNP that delivers for Scotland. It’s time for the Westminster parties to show the same spirit of co-operation and compromise, to stop squabbling with each other and to join us in working for Scotland’s best interests instead of their own.”

Westminster WILL deliver, says Carmichael

The UK Government will deliver on its pledge to bring significant new powers to the Scottish Parliament as part of further devolution within the UK, Scottish Secretary Alistair Carmichael said yesterday.

It coincided with the publication of a UK Government Command Paper, a summary of the proposals set out by the 3 main Westminster political parties that have been put forward for further devolution.

Speaking ahead of giving a statement in the House of Commons, Mr Carmichael said: “The referendum result made clear the majority of people in Scotland want to see a strong devolved Parliament as part of the UK.

“We pledged further devolution and we will deliver on that promise. Today’s Command Paper sets out the detail of the political positions from the parties. The Smith Commission must now be left to carry out its work before Heads of Agreement are published at the end of November.

“This is the first time all of Scotland’s main political parties will be involved in a process exploring areas of further devolution. I welcome that as an important recognition we must work together to deliver the new powers people want to see for Scotland”.

The independent Smith Commission is convening cross-party talks to reach agreement on the proposals. Its terms of reference make clear the recommendations will deliver more financial, welfare and taxation powers to strengthen the Scottish Parliament within the UK.

The move comes just days after the Scottish Government’s budget used the powers devolved by the Scotland Act 2012 to set Scottish stamp duty and landfill tax rates, as well as extend government borrowing.

More information about the Smith Commission

Have your say on further financial devolution

The options for the further devolution of financial powers to Scotland are to be examined by the Scottish Parliament’s Finance Committee in a new inquiry launched last week – and the public are being asked to give their views.

Following the referendum, and the establishment of the Smith Commission, the Committee’s inquiry will look at what general principles should apply to the devolution of further financial powers and what those powers should be. The inquiry will also consider the impact of any further financial powers on the block grant.

During the course of the inquiry, the Committee will take evidence from a range of witnesses and is also asking people to submit their views on the options for financial devolution in Scotland.

Committee Convener, Kenneth Gibson MSP said: “Following the referendum, there is a debate about the further devolution of powers to Scotland. The Smith Commission is currently considering what further powers should be devolved to Scotland and key amongst these will be financial powers. It is only right that we contribute to this debate.

“Our inquiry will explore what powers should be devolved and the implications for Scotland’s funding. We want to hear a range of views about what this would mean for Scotland.”

The Committee is asking for views on a range of issues including:

• What general principles should apply to the devolution of further financial powers to the Scottish parliament?
• What further financial powers should be devolved to the Scottish Parliament and why?
• What further financial powers should not be devolved to the Scottish Parliament and why?
• To what extent could the Scottish Government be constrained in how it uses new tax powers given the interaction with fiscal decisions at a UK level?
• What are the implications of further fiscal devolution for the block grant?
• What are the implications of further financial powers for the role of Revenue Scotland?

The closing date for responses is Friday 14 November 2014.

All responses should be sent electronically to: finance@scottish.parliament.uk

More information on the Committee’s inquiry can be found on the Committee’s webpage:
http://www.scottish.parliament.uk/parliamentarybusiness/CurrentCommittees/29822.aspx

Don’t make Scotrail decision before new powers devolved: Lararowicz

Loal MP Mark Lazarowicz has backed a call by Scottish Labour MPs, MSPs and the RMT rail union for the retendering of the ScotRail and Caledonian sleeper franchises to be postponed in the light of the timetable for the devolution of new powers to the Scottish Parliament.

Former Prime Minister Gordon Brown has proposed that the new devolved powers should include further devolution of powers over rail transport.

The Government is to publish the proposals of each of the three main Westminster parties by 30 October and the Scottish people, civil society in Scotland and the Scottish Parliament will then be consulted on them, but a decision on the company to operate the Scotrail franchise is due to be announced this month with the franchise to start in April 2015 and to run for the next 10 years.

The North and Leith MP said: “The proposals for further devolution include new powers covering rail transport and in the light of that I am calling on the Scottish Government to postpone the retendering of the ScotRail and Caledonian sleeper franchises.

“That would mean that once the powers are devolved the Scottish Government will be free to decide whether it wishes to run rail services in the public sector rather than continuing with privatisation.

“The new powers should enable the Scottish people to make a real choice about the kind of society we are and, on rail as on other issues, the Scottish Government should not make that decision for us before we are able to.”

The timetable for the transfer of further powers to the Scottish Parliament can be found in the text of a Parliamentary Motion at

http://www.publications.parliament.uk/pa/cm201415/cmagenda/fb141013.htm

[Section B, no. 28]

Lazarowicz: transfer of powers ‘without delay’

Mark Lazarowicz MP has pledged to work for the transfer of powers promised to the Scottish Parliament without delay as Ed Miliband and the other UK party leaders confirmed their commitment to the process.

The North & Leith MP sets out his views on the way ahead for Scotland and the rest of the UK on the path to constitutional reform in an article published on his website today.

He said: “There must be no delay in the transfer of powers promised during the referendum campaign to the Scottish Parliament.

“Gordon Brown announced a timetable with cross-party support for further transfers of power to the Scottish Parliament and Ed Miliband as well as the other UK party leaders have reaffirmed their commitment to it.

“That has now begun with the agreement of a Parliamentary Motion which will be published as soon as Parliament returns. Full debate involving the Scottish Parliament and civil society in Scotland will follow leading to legislation being drafted by January.

“We now need to re-engage people to rebuild democracy throughout the UK by devolving power and Scotland is leading the way in that.”

You can find the full text of the article at:

http://www.marklazarowicz.org.uk/constitutional_reform_all_round_needed_but_must_not_delay_implementation_of_commitments_to_scotland

1 April was ‘devolution landmark’

1 April marked a major milestone in the continuing road of Scottish devolution, Scottish Secretary Alistair Carmichael said yesterday. He said that as part of the United Kingdom, Scotland has ‘the best of both worlds’

Major financial changes introduced as part the Scotland Act 2012 will begin to take effect on 1 April next year, increasing the accountability of the Scottish Parliament to the voters who elected it for raising revenue, and making decisions about how it is spent. These changes will mean that the Scottish Parliament will be responsible for funding around a third of devolved spending – roughly double the amount it currently funds.

Mr Carmichael said: “The Scotland Act provides the largest transfer of financial powers to Scotland in over 300 years. The Act received the unanimous support of both the UK and Scottish Parliament building on and strengthening the great success that is devolution.

“The Scotland Act devolves significant tax powers including the ability to set a new Scottish rate of income tax and gives the Scottish Government access to substantial borrowing powers. New powers bring new accountability and new responsibilities. To the people of our country, Holyrood will be more responsible and more accountable than ever before for the money it raises and for the money it spends.

“Today marks a major milestone in the continuing road of devolution. As part of the United Kingdom, Scotland has got the best of both worlds: a strong Scottish Parliament with financial powers that can take decisions on those things that affect our everyday lives, like our schools and hospitals and we can pool our resources ensuring we benefit from a strong UK economy that is growing and creating jobs.”

The powers which come into effect on April 2015 are:

The full devolution of stamp duty land tax and landfil tax from April 2015. The Scottish Government has taken forward legislation to replace these taxes in Scotland with the Land and Buildings Transaction Tax and Scottish Landfill Tax. It is also taking forward legislation to establish Revenue Scotland as the tax administration responsible for the collection of the new taxes.
Extended current borrowing powers of up to £500m and creation of a new Scottish cash reserve to help manage the new tax receipts.
A new £2.2bn capital borrowing power for the Scottish Parliament, with a limited version of the power in place from April 2013 to enable the Scottish Government to fund £100m of pre-payments for the Forth Road Crossing.

The powers which come into effect from April 2016 are:

A new Scottish rate of income tax. The basic, higher and additional rates of UK income tax will be reduced by 10 pence in the pound for Scottish taxpayers. The Scottish Parliament will set a new Scottish rate – with no upper or lower limit – which will apply equally to all of the reduced main UK income tax rates.
For example, a UK basic rate at 20 pence would be reduced down to 10 pence, and a Scottish rate of 9 pence would see Scottish taxpayers instead paying 19 pence per pound at basic rate.
The block grant to Scotland will be reduced by an amount corresponding to the 10 pence in the pound reduction on the UK rate of basic, higher and additional tax. This will mean that a Scottish rate of 9 pence would see a reduction in income for the Scottish Government, while a rate of 11 pence would see an increase as compared with current arrangements.
The Act also introduced a power to create new devolved taxes, by a process of agreement between the two governments. This power has been in force since May 2012. The Scottish Government has not yet made any proposals to create new devolved taxes using this power.