Scotland to set own tax rates and bands

27 November 2014

 

The Smith Commission has agreed that the Scottish Parliament should 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.

The report says that the Scottish Parliament should have the power to set income tax rates and bands, the body on strengthening devolution has concluded.

The Smith Commission also said a share of VAT should be assigned to the parliament, and Air Passenger Duty fully devolved.

The commission was set up by Prime Minister David Cameron in the wake of the vote against Scottish independence. Its findings will form the basis of legislation on more Scottish powers.

The Smith Commission, which took forward its recommendations in consultation with the Scottish Parliament's five parties, recommended that:

· The parliament should 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.

· The parliament should be given powers to allow 16 and 17-year-olds to vote in Scottish elections.

· The parliament should be given powers to create new benefits in devolved areas and make discretionary payments in any area of welfare.

· A range of other benefits that support older people, carers, disabled people and those who are ill should also be fully devolved.

· The Scottish government and Scottish Parliament should have a "formal consultative role" in the process of reviewing the BBC Charter.