Nick Clegg is coming to Scotland today to lend his support to George Lyon MEP ahead of Thursday’s European elections. He’s also going to be speaking to the Scottish Chambers of Commerce in Edinburgh.

There has been hardly any mention of actual European issues in this election as politics up here is dominated by the independence referendum. Nick’s remarks will concentrate on the question of more powers for the Scottish Parliament. He’ll say that a no vote is a positive choice and will repeat his comments on Andrew Marr yesterday that the Liberal Democrats are the guarantors of more powers after a no vote. Certainly our party has been leading the debate on this both in this referendum and for, oh, only about a century or so before. Here are some of the highlights:

No to isolation, yes to change

You should know – all of Scotland should know – that saying no to leaving the UK and the EU does not mean no to more change. And over the past four years, I’m proud of the contribution that the Liberal Democrats have made to this country. But one of our proudest achievements is Scotland specific.

The 2012 Scotland Act constitutes the single largest transfer of financial powers from London to Scotland since the UK’s creation.
Many of those powers have already gone live, with borrowing powers to be introduced in 2015. And a Scottish income tax rate set by the Scottish Parliament from 2016.

Liberal Democrats were clear in the coalition negotiations that this Act was necessary to strengthen the devolution settlement – giving people in Scotland more say over domestic affairs while remaining part of a strong and successful UK.

Lib Dems lead the way

But the story of devolution – the journey to home rule – is not yet complete. We believe we can empower the Scottish Parliament and strengthen its accountability even further. In the event of a No vote this September, all three pro-UK parties have pledged to deliver more powers.

But it is no surprise that my party was first out the blocks or that we will act as the guarantors for a far-reaching deal. Devolution is in our instincts – just as it is in the interests of people in Scotland. Liberal Democrats worked with Labour and those outside politics in the Scottish Constitutional Convention, where we pushed for greater powers than many wanted to give. And we won them.

We worked again with Labour plus the Conservatives and others on the Calman Commission, again with the most radical proposals of the Scottish parties, reaching an agreement that we enacted in government.

And so, for the next real transfer of powers, it is natural that our ideas should come first, that we should be bold, and that we will play a central role in delivering for Scotland.

But what about the details?

The proposals published by Ming Campbell’s Home Rule Commission are radical and far-reaching. And when the next phase of devolution is shaped after September’s vote they will form the basis of our contribution to that discussion. We want to see a more powerful Scottish Parliament, whose actions are more accountable to the people who elect it. That means raising more of the money it spends on the priorities that it has chosen. The 2012 Scotland Act will mean that from 2016 the Scottish Parliament will raise about 30% of the money it spends.
Under our proposals we raise that level up to over 50%. Income tax paid on earnings by Scottish taxpayers should be the responsibility of the Scottish Parliament. With the rates and bands determined here in Scotland. So should capital gains tax. And inheritance tax too. Why should these be the reserve of the UK Parliament only? If people in Scotland want to further cut the income tax burden on middle-income earners, that should be a choice for them. If they want to raise it in order to take less from lower earners, again they should be free to do so. If they elect a Parliament whose wish is to cut or increase capital gains tax, inheritance tax, or spending on schools and hospitals – well, so be it.

Let these debates come out of the shadows. That is what democracy is about. Taking decisions and the responsibility that goes with them. Scotland should be able to innovate and change within the UK in line with its own opportunities and challenges, and that is what our proposals allow.

And how do we get there?

Of course our proposals are not the final word. The settlement on further powers will need to be negotiated. Between the three pro-UK parties of course. With the SNP, if – for the first time – they were willing to be part of the devolution conversation too. But also with those outside politics who have a major stake to claim in Scotland’s future. Business must be at that table – contributing to this work, influencing its outcome, getting it right.