THANK goodness David Mundell, having fought off all the other Scottish Tory MPs to become the new Secretary of State for Scotland, has now explained to us all the full range of powers offered to be devolved in the latest Scotland Bill ("Mundell tells of 'no brainer' choice on new fiscal powers", The Herald, June 29).
Shangri-la is in sight at last. In just three or four more years the Scottish Government will have control over two publicly-funded social allowances and will be able to increase these two above the levels elsewhere in the UK. But it will have still no control over unemployment relief or other major welfare benefits.
That sounds great, but how will we will be able to afford these increased benefit payments? No problem, says Mr Mundell. Holyrood will be allowed to increase income tax rates and allowances in Scotland, and also keep almost half the amount of VAT raised here and some of the income raised by the Crown Estates (how did the Royal Household get possession of all of Scotland's coastline and offshore waters, by the way? Did we vote to hand them over at some time in the past without noticing?).
So problem solved. The Scottish people will be happy to pay more tax for deserving causes, and the Scottish Government will spend the extra money wisely where it is most needed and will do most good (except for those who are disabled or unemployed). Surely this deal must be a "no brainer" as Mr Mundell so eloquently suggests?
But hang on a minute. The London Treasury has made it very clear that whatever extra revenue the Scottish Government collects from the new tax powers, an equivalent amount will be deducted from the Barnett Formula block grant. (And of course this annual benevolence is not a token of English generosity to its poor northern neighbour, as the London-based media constantly suggests, because the amount we receive from Barnett is always considerably less than the total of all taxation raised in Scotland, every pound of which goes directly to the Treasury at the moment).
So in effect more powers over taxation will not increase the total cash available to the Scottish Government and there will be no extra public funding to pay for higher benefits. Is that really what the Smith Commission recommended, and if so are we being taken for mugs? Perhaps Mr Mundell could provide a clear answer, for a change.
Iain AD Mann,
7 Kelvin Court, Glasgow.
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