Scotland Bill

Debate between Lord Maxton and Lord Sassoon

Tuesday 28th February 2012 Lords Chamber

[Lord Sassoon]

If my noble friend would bear with me, we will get to this point and to other points he has made. If he wishes to repeat the points he has made previously, he can do so ad nauseam. However, I say to him respectfully that we have got the point loud and clear, and I will come on to it. As the noble Lord, Lord Browne, pointed out, the genesis of this power is in Calman. It is a power that has been debated and approved of by committees in another place in this Parliament, as well as in the Scottish Parliament—but I will come back to that. My noble friend completely mischaracterises the debate so far over this power to create new taxes.

We are discussing a number of amendments to an important clause, and I should therefore make sure that we are clear about the architecture of it before I come back to the heart of the arguments. Clause 28 inserts new Sections 80A and 80B into the Scotland Act. New Section 80A provides an overview of the new taxation provisions. New Section 80B introduces a power to add new devolved taxes to those devolved by Clauses 33 and 35, and makes certain consequential provisions applicable to devolved taxes.

Amendment 51A, tabled by the noble Lord, Lord Sewel, would remove new Section 80B. The amendment of my noble friend Lord Forsyth of Drumlean seeks to remove devolved taxes altogether from the legislative competence of the Scottish Parliament, thereby preventing it from legislating on all tax matters besides local taxes. The amendment tabled by the noble Lord, Lord Browne of Ladyton, and the noble and learned Lord, Lord Davidson of Glen Clova, would provide approval of the criteria and procedures under which new taxes will be considered for devolution by this Parliament before the power could be used.

I propose to outline briefly why the financial aspects of the Bill introduced in new Section 80A, and which I stress my noble friend Lord Forsyth’s amendment seeks to remove, will raise the accountability of the Scottish Parliament and benefit both Scotland and the UK as a result. I very much note what my noble friend Lord Steel of Aikwood said about the importance of accountability. After I have dealt with those issues, I shall address in more detail new Section 80B, the subject of the amendment of the noble Lord, Lord Sewel, and the arrangements that we propose for the approval of new taxes—the subject of the amendment in the name of the noble Lord, Lord Browne, and on which he seeks assurances. That is a critical element of the construct to which other speakers in this debate did not give proper weight.

New Section 80A introduces the finance clauses in the Bill. It grants significant positive new powers to Scotland, and I should outline the measures in the clauses and why they represent such an important and beneficial step for both Scotland and the UK as a whole. The Scotland Act 1998 specifies that tax policy, aside from local taxes, is outside the Scottish Parliament’s legislative competence. The changes made by the Bill that are introduced in new Section 80A will amend the Scotland Act to enable the Scottish Parliament to legislate on certain devolved areas of tax policy. The changes will give the Scottish Parliament a real stake in Scottish economic performance because a significant proportion of the budget for public services in Scotland will come directly from taxes set and raised in Scotland. Some speakers have suggested that it would be appropriate to go much further, but we are taking a significant step here. It will enable the full devolution of stamp duty, land tax and landfill tax and enable the Scottish Parliament to legislate for a Scottish rate of income tax.

[Lord Maxton]

My Lords, I am not very clear about the Scottish rate of income tax. I am a Scot; I live in Scotland—that is where my home is—but I am paid a pension by Parliament which comes from Cardiff. How does that become part of that? It is paid directly into my bank; as far as I know, they do not need to know where I live; so how do I get income tax variation for Scotland alone?

[Lord Sassoon]

If the noble Lord will forgive me, we are coming to income tax under the next clause. I am sure that we will come back to that extensively and properly later. This is the enabling clause that enables the setting of the Scottish rate as well as the focus of the amendment on the power of the Scottish Parliament, with the agreement of this Parliament, and subject to safeguards—to which I shall come—to introduce new taxes.

I hope that the Committee will agree with me and the Government that these changes will enable the Scottish Parliament and the Scottish Government to respond better to the evolving needs of Scottish society and the Scottish economy; and that they will increase the Scottish Parliament’s accountability, as its decisions on public services will be directly related to decisions on Scottish taxes.

I see that the noble Lord, Lord Foulkes of Cumnock, is nodding in agreement; I hope that that will continue right through this section of the Bill. No, he is saying that it will not; no doubt we will come back to football clubs and other matters later, but we agree so far.

Thirdly, these changes will bring decision-making over the issues that affect them closer to the Scottish people, which we believe is appropriate. New Section 80B will create the power for the Scottish Parliament to introduce new taxes, subject to the agreement of both Houses in this Parliament. The noble Lord, Lord Sewel, was quite right to draw attention to the approval process. He seems to want to draw it even more tightly but, on the other hand, he points out—partially in answer to my noble friend Lord Forsyth, who seems to think the approval process to be woefully inadequate—that the clause states that it must have the agreement of both Houses in Parliament, which is not necessarily the case with all taxes as it stands at the moment.

Scotland Bill

Debate between Lord Maxton and Lord Sassoon

Tuesday 28th February 2012 Lords Chamber

[The Commercial Secretary to the Treasury (Lord Sassoon)]

My Lords, this is proving to be an education, not least because we have another debate in which there are some points on which I can see the direct relevance to the clause we are discussing and a number of other points on which I am struggling a bit. They are all important points; I am just not quite clear what the connection is with a clause that has to do with the powers of HMRC.

Of course, the football question is directly relevant, and we must deal with football. I declare an interest here as a season ticket-holder of Arsenal Football Club —things are looking very good.

[Lord Maxton]

The noble Lord might be aware that Mr Ally McCoist, the manager of Rangers, was complaining bitterly because one of the things the new owner of Rangers had done was to sell the shares in Arsenal Football Club which apparently Rangers had held for a very long time.

[Lord Sassoon]

There is another thing I have learnt this evening. I am very grateful to the noble Lord.

I appreciate that this is very dangerous territory. The important point about the football is that this is a clause about the powers and duties of HMRC in relation to Scottish affairs. I do not know whether the noble Lord, Lord Foulkes of Cumnock, was trying to set a trap for me by getting me drawn into the tax affairs of an individual taxpayer, because of course the powers we are talking about here define, among other things, where information can be shared and what the limits are. If he was setting me a trap, I am doing my best not to walk into it—he was not setting me a trap, good. He will understand that I cannot possibly comment on the tax affairs of any individual taxpayer. I will simply say that there is nothing in the Bill that would change the circumstances of an individual—or a company—who is overdue in paying taxes to HMRC.

My noble friend Lord Lyell asked whether there was a difference between preferred creditor and ordinary creditor status between Scotland and the rest of the UK. I must confess that it is not an issue I have in the front of my mind, and I will write to him. I am sure it is a very important question, not only for football clubs.

Government: Savings

Debate between Lord Maxton and Lord Sassoon

Thursday 24th June 2010 Lords Chamber

[Lord Sassoon]

I simply confirm that that will be done, in line with my noble friend’s suggestions.

[Lord Maxton]

My Lords, is not the introduction and development of smart-card technology for all our citizens the best way of improving the quality and reducing the expense of public services generally? If that is so, why on earth are this coalition Government abolishing the ID card programme?

[Lord Sassoon]

It is a waste of money, my Lords.