Smith Commission

Tony Baldry Excerpts

Thursday 27th November 2014 Commons Chamber

[Mr Carmichael]

I would be delighted to join the hon. Lady in her constituency as part of this grand Burns tour that I seem to have signed up to—I just hope that Opposition Members will not start complaining about the cost. She will see that the Work programme is to be devolved, which I think is sensible. Indeed, it was something John Swinney spoke about many times when I shared platforms with him during the referendum campaign. They have the powers; they just have to get on and use them.

[Sir Tony Baldry (Banbury) (Con)]

Should not those of us who believe in lower taxes welcome this proposal’s potential to encourage a healthy competition between London and Edinburgh over which sets the lowest rate of income tax? If Edinburgh sets a significantly higher rate than this Parliament, there will be a movement of talent from Scotland down south. Likewise, if we set a higher rate than Edinburgh, people will start moving to Scotland. That competition should hopefully lead to lower rates of tax.

[Mr Carmichael]

That is indeed one of the possible consequences. The truth of the matter is that the Scottish Parliament will, for the first time since it was set up, control both sides of the books for the areas for which it has responsibility; how it spends money and how it raises it. It will then have to be accountable to the voters for how it taxes them. I think that in time, that will have a transformative effect on Scottish politics.