MSPs call for more Holyrood power

2011-03-03 05:44:05

3 March 2011 Last updated at 11:49 Share this page Delicious Digg Facebook reddit StumbleUpon Twitter Email Print MSPs call for more Holyrood power under Scotland Bill Legislation to strengthen Holyrood's powers is currently going through Westminster Continue reading the main story Related Stories Q&A: Scotland Bill Scotland to get new budget powers MPs debate more Scottish powers

UK government plans to increase the Scottish Parliament's powers need to go much further than the proposals currently on the table, MSPs have said.

A special Holyrood committee set up to scrutinise the Scotland Bill said proposed new borrowing powers needed to be doubled, to £5bn.

The committee convener, Labour's Wendy Alexander, said Holyrood needed the ability to invest in Scotland's future.

The UK government said it would consider the recommendations.

UK ministers say the Scotland Bill, currently going through Westminster, will devolve new tax and borrowing powers worth £12bn, as well as giving control over air weapons and drink-driving and speed limits.

But, publishing the Holyrood committee's report, which contained a series of key recommendations, Ms Alexander said doubling the proposed borrowing powers or being able to issue bonds would help pay for major infrastructure projects, like the new Forth road bridge, or a large housing programme.

The MSP said: "It is more than 10 years since the Scottish Parliament was created.

Continue reading the main story Analysis Brian Taylor Political editor, BBC Scotland

It remains the fundamental fault line in Scottish politics: the distinction between those who advocate independence and those who favour the Union.

That fault line was to the fore as the Holyrood committee which has been considering the Scotland Bill presented its conclusions.

There were no histrionics, no raised voices, no red cards, no need to send for the stewards, no angry scenes. But there was palpable tension nonetheless: that tends to happen when the disagreement is basic, even visceral.

The committee notes that it has yet to receive a detailed proposal on that point from the UK Government - or indeed the Scottish Government.

But, in a lengthy annexe, the committee itself sets out the basis upon which that calculation might be done.

This is, indeed, fundamental to the issue of whether grant for tax will be a good trade.

Presumably the UK government will set out their position clearly before an absolutely final decision is taken.

"We are now taking the next steps on a journey with new financial powers and responsibilities, which will provide ministers with the tools to invest in our future and make life better for people in Scotland."

But the committee report dismissed SNP calls for full tax powers.

The Scottish government, which gets its funding through the Treasury block grant, said the bill was too limited and has called for full fiscal autonomy.

SNP MSP Brian Adam, deputy convener of the Scotland Bill committee, said the bill as it stood would fail to deliver jobs or properly increase Holyrood's accountability.

"The UK government failed to present the committee with any evidence on how their tax proposal would operate or how they would counter its damaging deflationary effects, which would significantly cut the Scottish budget," he said.

The committee also recommended doubling the proposed short-term annual borrowing limit, which would see it increased from £500m to £1bn, and devolving the aggregates levy and air passenger duty following a UK government review of the issues.

Scottish Secretary Michael Moore welcomed the report as a significant step forward, adding: "We are making real progress on bringing new powers and financial accountability to the Scottish Parliament.

"The UK government will consider the recommendations in the report carefully."

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