Michael Moore writes… Strengthening Scotland’s future

Yesterday the Government published its Scotland Bill. When this becomes law, a second and exciting phase in Scottish devolution will begin. We are strengthening Scotland’s future based on three principles: empowerment, accountability and stability.

This Bill starts its parliamentary process with the support of the Conservatives, Labour and the Liberal Democrats. Each of our parties – plus business and civil society – contributed to the Calman Commission, which drew up the blueprint for it. It is right that change of this sort should be built on a broad consensus. But now it is this government that is turning those principles into practice.

And let’s be clear: this plan is steeped in Liberal Democrat values.

We believe in devolution. By nature, we are mistrustful of centralised government and welcoming of the flow of power from Westminster to our nation states, our communities and to individuals too. When the Scottish Constitutional Convention drafted the plan for a Scottish Parliament, we were at the table. When the referendum campaign was raging, we were on the streets campaigning. And in 1999, when the first democratically elected Scottish Parliament was elected, we joined the coalition government that heralded a new era of Scottish politics.

The Bill is diverse in content, and gives the Scottish Parliament a range of new powers: regulating air weapons; setting drink-drive limits; establishing a Scottish national speed limit.

But its centrepiece is the devolution of tax and borrowing powers. This is the greatest transfer of fiscal power from London since the creation of the UK. Today, the Scottish Parliament only has revenue powers over council tax and business rates and raises only 15% of its own revenue. The Scotland Bill transforms that. The most significant change we will make is to create a Scottish Income Tax. We’ll do this by cutting 10 pence off every band of income tax. We will proportionately adjust the block grant that Scotland receives, and then allow the Scottish Parliament to reset the tax rates. We will also give the Parliament nearly £3 billion in borrowing powers.

This will empower the Scottish Parliament and Scottish Government to make tax and spend choices that will determine future revenues and help shape Scotland’s future economy.

It will also make both more accountable to the Scottish people. It is an incomplete construct to have a Parliament that spends money but is responsible for raising little of it. By giving these tax powers to Holyrood, MSPs will have to answer to voters for the money that they spend. And by moving those spending decisions closer to Scottish society and to Scottish business, both will be better placed to influence the decisions that impact on their lives and livelihoods.

By empowering Holyrood, we are also ensuring its stability. Our plans will be phased to ensure no sudden shock or windfall to the Scottish budget. By giving the Parliament – which has been a success over the past decade – room to innovate safely, we will strengthen Scotland within the UK.

And for all their bluster, the SNP has no alternative. Their plans for full fiscal autonomy are a non-starter: light on detail, high on cost and fraught with risk. No industrialised country has ever gone down that road. This is independence masquerading as reform. It won’t wash.

But for our party, the victory here is not a tactical one. It is principled one. We are working with others to devolve power from the centre to the communities that need it and best know how to use it.

This Bill reflects our values, and we should be proud of it.

Michael Moore MP is Secretary of State for Scotland

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This entry was posted in Op-eds and Scotland.
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6 Comments

  • Andrew Duffield 1st Dec '10 - 5:16pm

    “This will empower the Scottish Parliament and Scottish Government to make tax and spend choices…”

    But do such choices allow for new taxes in lieu – a progresive property tax for example – or are the Scots stuck with a Hobson’s choice of simply varying deadweight taxes on jobs?

  • The Scotland Bill is a dog’s dinner – a hotch-potch of half measures, unusable powers, and meaningless wheezes thrown together by the three unionist parties in a really desperate attempt to head off the SNP’s calls for FFA.

    I have a lot of respect for Michael Moore, indeed he was the first MP I ever voted for, and it’s sad to see him reduced to spinning Tory lies as Westminster’s man in Scotland, especially in a post he himself wanted to see abolished less than a year ago.

  • I think he is on record in the Commons as wanting to see the position abolished. Mind you, I like the “desperate attempt” narrative. Why should that be when the SNP have shown themselves to be utterly incapable of actually varying the tax raising power they have now?

  • He’s only ‘utterly incapable’ of using those powers in the same way that the LibLab coalition were, and that any government drawn from any combination of the main parties would have been. No one ever used that power and no one bar the Greens ever wanted to use that power for the simple reason that it wouldn’t make any economical sense to use it.

    Calman is going to be the same, but bigger.

  • Missed the point entirely. Even as a fig leaf for national statehood is it not, the SNP have shown themselves to lack balls. If they want FFA and then independence then persuade the voters. They haven’t.

  • That remains to be seen, surely.

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