Draft Scottish Rate of Income Tax (Consequential amendments) Order 2015

Owen Thompson Excerpts

Wednesday 16th September 2015 General Committees

[Owen Thompson (Midlothian) (SNP)]

I will be very brief. We certainly do not object to any of the proposals outlined in the order. I would like to make the point, however, that while the additional powers granted to the Scottish Parliament are welcome, they are limited. We feel they need to go much further. Even with this additional power, Scottish Ministers will still not be able to vary the individual rates to make any progressive changes to the tax regime. They will only be able to make block changes. We wish to see that taken much further.

Much of the content of the order will be largely superseded by what is in the Scotland Bill, so it should be seen very much as a tidying-up exercise. I would make the case that it would be far more beneficial for the taxpayers of Scotland if all tax-varying powers were to be devolved to the Scottish Parliament.

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[Mr Gauke]

I do agree with the hon. Gentleman. Powers have been in place with the Scottish variable rate for many years and have not been used. We now have the additional powers of the Scottish rate of income tax. If the Scottish National party is so keen to make use of those powers, I look forward to hearing what it will do with the Scottish rate of income tax. We have gone even further in providing devolution consistent with the Smith commission, and maybe it is time that the debate moved on from which powers are devolved to how those powers will be used.

[Owen Thompson]

Does the Minister accept that the current powers are only to vary upwards by 3p across the board? Individual levels cannot be varied, and the rate of income tax cannot be reduced below what it currently is.

[Mr Gauke]

If the SNP is suggesting that it has a plan to reduce taxes and reduce spending accordingly, I look forward to hearing it. In the absence of that, let me make the point that what is set out in the Scotland Bill—I appreciate that we are not debating the Scotland Bill today—will give the Scottish Government a huge amount of flexibility. I am sure the people of Scotland are looking forward to hearing, at some point, what the Scottish Government intend to do with it. I note that we hear no further information at the moment on that point.