THE SNP will demand that Scotland keeps all its 59 MPs, with full voting rights at Westminster, as part of its plan for full fiscal autonomy.

 

The party clarified its position yesterday after an academic paper suggested Scotland's representation in Parliament would come to an end under a devo max system.

The paper, co-authored by Jim Gallagher, a former adviser to the pro-UK Better Together campaign, argues it would be "inconceivable" for Scotland to become fiscally autonomous while the country's MPs retained the right to vote on UK budget decisions.

It said the SNP might have to accept "no or purely symbolic representation at Westminster" as the price for securing full fiscal autonomy.

The SNP rejected the analysis last night.

A party spokesman said: "We support keeping the current 59 seats for Scotland with equal voting rights."

Labour and the Conservatives repeated their outright opposition to full fiscal autonomy, claiming it would effectively end the Union.

Under full fiscal autonomy, all domestic policy-making would be devolved to Holyrood.

Defence, the security services, foreign affairs, macroeconomic policy and a handful of other areas, such as passports, would continue to be reserved to Westminster.

The Scottish Government would rely on taxes raised in Scotland to meet spending commitments in Scotland and make an annual contribution to shared costs such as defence.

The plan was set out in the SNP Government's submission to the Smith Commission last year but the document does not directly address the question of Scotland's representation at Westminster.

In their paper for Nuffield College, Oxford's centre for public policy, Professor Gallagher and Iain McLean, of the British Academy, say minimal tax decisions affecting Scotland would be taken at Westminster and only 13 per cent of the spending benefitting Scotland would be determined by the UK Government.

They write: "In these circumstances, it is inconceivable that Scottish MPs could be allowed to vote on all of England's taxes and spending, but none of Scotland's.

"A precedent already exists for this, and shows pretty clearly what would have to happen.

"Under devo-max or full fiscal autonomy, Scotland would be like the Channel Islands

or the Isle of Man."

The crown dependencies - which are not part of the UK - send no MPs to Westminster.

The study adds: "That is the inevitable logic of devo-max and full fiscal autonomy.

"It is a form not of devolution, but of diluted independence. "No principled UK government could support it."

The academics predict the SNP will seek further economic powers short of full fiscal autonomy as the "immediate fiscal consequences

for Scotland would be catastrophic".

But even then, they argue Scotland might have to accept a reduction in its number of MPs.

"It is a price that nationalist politicians might be willing to pay as a step towards having no or purely symbolic representation at Westminster under fiscal autonomy, and then none at all under independence," they write.

Labour and the SNP have hit back angrily at Conservative plans to bar Scots MPs from voting on income tax rates south of the Border.

The Tories say the move - which is strongly supported by the party's backbenchers - is "fair and right" because income tax rates in Scotland will be set at Holyrood under plans for further devolution devised by the Smith Commission.

Labour claimed the move opened the door to a possible deal between the Tories and SNP over full fiscal autonomy. The claim has been dismissed by

both sides.

A Scottish Conservative spokesman said: "We are a Unionist party which believes in the Union.

"We will not even entertain the notion of full fiscal autonomy because it would end the solidarity that binds our nations together."