Scotland Bill

Lord McFall of Alcluith Excerpts

Tuesday 28th February 2012 Lords Chamber

[Lord Sassoon]

My Lords, I will not stand here and criticise or question the way that another place goes about its business. We are now giving the Bill—and this clause in particular—appropriate scrutiny, and I will take as long as I need to give appropriate answers to the questions that were raised.

[Lord McFall of Alcluith]

I refer to the contributions made already. Under the Bill, could the Scottish Parliament reduce corporation tax and increase taxes on oil and gas?

[Lord Sassoon]

If the Scottish Government came forward with new tax proposals, they would have to meet the criteria that I laid out, which would include provisions on the macroeconomic effect. Clear criteria are set out and it would not be sensible for the Scottish Government to come forward with tax proposals that did not meet the criteria. The noble Lord, Lord Browne, asked whether the criteria should be enshrined in some way. It strikes an appropriate balance to have them clearly set out in the Command Paper.

--- Later in debate ---

[Lord Sassoon]

My Lords, I am not sure that it is profitable to speculate about what, at some time in the future, a Scottish Government might come forward with. I have set out that there are clear criteria that the UK Government will use to screen proposals. It is very important that the criteria are clear to the Scottish Government—and they are. Secondly—I will give way in a moment to the noble Lord, Lord McFall—it is also appropriate that they are set out, as they are, in a Command Paper, which will give flexibility as circumstances change. The criteria are fundamental and clear.

[Lord McFall of Alcluith]

Perhaps I may intervene again. I do not have a clue about what the Minister’s answer to my question was. Corporation tax has been a big issue in Northern Ireland and Scotland. It is a contemporary issue in Scotland. I put it to the Minister again: could the Scottish Government come forward with proposals to reduce corporation tax and increase oil and gas taxes? I ask for a simple yes or no answer.

[Lord Sassoon]

The answer is a very simple yes. They could come forward with such a proposal, and the Government would judge it against the criteria. If it met the criteria, it would then go through the procedure of the two Houses of Parliament.