THE main UK parties have set their own proposals for greater devolution in recent months.
They build on the 2012 Scotland Act which, from 2016, will make Holyrood responsible for levying about half the income tax raised in Scotland. The parties' plans have areas of common ground but also significant differences.
Labour
Tax: Would give the Scottish Government power to vary income tax by 15p in the pound (three quarters of the current 20p basic rate) compared with 10p under the 2012 Act. The Scottish Government would have the power to raise the higher rates but could only reduce them if the basic rate was also cut.
Welfare: Housing Benefit to be devolved, allowing Holyrood to abolish the bedroom tax. Holyrood would also take control of Attendance Allowance, the main benefit for disabled pensioners, while the DWP's Work Programme, helping the unemployed gain skills, would be devolved to local authorities.
Others: Scotland should have its own Health and Safety Executive and be responsible for employment tribunals.
Conservatives.
Tax: The Tories' plan to devolve income tax goes further than Labour. The tax-free personal allowance would continue to be set by Westminster but after that Holyrood would be responsible for setting rates and tax bands.
The plan also called for a share of VAT raised in Scotland to be assigned to Holyrood.
Both Labour and the Tories would put Holyrood in charge of raising about 40 per cent of the money it spends.
Welfare: Housing Benefit and Attendance Allowance to be devolved.
Others: Creation of an independent forecaster, the Scottish Fiscal Commission, along the lines of the existing Office for Budget Responsibility.
Lib Dems.
Tax: Holyrood would become responsible for raising almost all income tax plus capital gains tax and inheritance tax.
It could also raise air passenger duty, giving the Scottish Government control over about two thirds of its revenues. Corporation tax receipts would be assigned to Holyrood. VAT, alcohol and excise duties would remain reserved to Westminster.
The Barnett Formula would be replaced by a needs-based mechanism for sharing UK resources. The Lib Dems call it "fiscal federalism."
Welfare: Reserved to Westminster.
Others: The three-hundred-year-old (1707) Act of Union will be abolished and replaced with a federal constitution for Scotland.
ends
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