New devolution legislation will make Holyrood the most powerful devolved assembly anywhere in the world, David Cameron has said.
The Prime Minister included in the Queen’s Speech a Scotland Bill extending devolution in the wake of the “vow” made by Westminster leaders in the run-up to last year’s independence referendum.
In her address the Queen confirmed: “My government will bring forward legislation to secure a strong and lasting constitutional settlement devolving wide-ranging powers to Scotland.”
Mr Cameron hailed the overall package of legislation as “the bold first step of a One Nation Government” for working people across Britain.
He claimed that the Scotland Bill, expected to be published on Thursday, would make Holyrood “the most powerful devolved parliament in the world”.
But his legislative package also includes measures aimed at giving English MPs the final say on legislation affecting only England at Westminster.
“Governing with respect means respecting the wishes of the English too,” the Prime Minister said.
“That’s why we will address the fundamental unfairness devolution causes in England by introducing English votes for English laws.”
The Conservative Government says the Scotland Bill will “deliver in full” the package of new powers for Holyrood which was agreed by the Smith Commission – a cross-party body set up in the aftermath of the referendum to look at further devolution.First Minister Nicola Sturgeon said: “The Scotland Bill must deliver the Smith proposals in full, but that must not be portrayed by the UK Government as some kind of concession delivering Smith would only be fulfilling the pledge they have already signed up to and the promise they have made to the people of Scotland.“In addition, we believe the massively changed political circumstances in Scotland provides a mandate for substantial further powers beyond those recommended by the Smith process, and we will continue to make a strong case to the UK Government for those powers to be delivered.”
Holyrood will be responsible for raising about 40% of Scotland’s taxes, according to the UK Government, with powers to set the thresholds and rates of income tax included in the Bill, with all the money this brings in staying north of the border.
The legislation also gives Holyrood some money from VAT revenues and devolves responsibility for air passenger duty and the Aggregates Levy to the Scottish Parliament.
MSPs will also get around £2.5 billion worth of new powers over welfare, the UK Government said, with the legislation allowing ministers north of the border to vary the frequency of the new Universal Credit, and also giving them the power to determine the rules for a range of benefits for carers, disabled people and the elderly.
The Barnett formula, which is currently used to determine public spending in the different parts of the UK will be retained, but the amount Scotland gets in the block grant will be reduced to account for Holyrood being given new tax-raising powers.
Labour’s shadow Scottish secretary Ian Murray said: “The tabling of the Scotland Bill is a significant moment. We will work to ensure the ‘vow’ made during the referendum is delivered in full, and that means keeping the Barnett Formula alongside more powers to make the Scottish Parliament one of the most powerful devolved parliaments in the world.
“The test now for the Tories is if they can deliver the devolution Scotland wants without leaving Scotland worse off.”
Mr Murray, who is now the only Labour MP north of the border, said: “Scottish Labour are clear – the Scottish Parliament should have final say over welfare, the powers to defend the vulnerable against Tory austerity whilst retaining the Barnett Formula.
“The SNP ran a general election campaign on the basis of full fiscal autonomy and abolishing the Barnett Formula. If they intend to amend the Scotland Bill to reflect that it is now incumbent on them to produce credible costings for their plans.”
The Liberal Democrats’ Scottish leader, MSP Willie Rennie MSP, urged the UK Government to ignore pleas from the SNP to create an “unstable form of devolution which could tip Scotland into independence.”
He said:“The SNP are playing their usual schemes in redefining their mandate. During the election the Smith Commission was barely mentioned. Now they say that a vote for the SNP was a vote for their version of more powers.
“This comes despite a democratic referendum barely months before where the majority of Scots voted for a stronger Scotland in the UK.
“The five party Smith Commission was undertaken in good faith. I urge the UK Government to ignore the pleas from the SNP to create an unstable form of devolution which could tip Scotland into independence.
“Liberal Democrats will be arguing for the Smith Agreement to be delivered in full and for the SNP to kick off its own process of devolving more powers to local communities.
“That is the stable settlement Scotland needs. It would mean the Scottish Government can move its focus towards creating opportunity for all.”