Tom Griffin (London, OK): The Calman Commission this week published its long-awaited report on the future of Scottish Devolution. Most attention is likely to focus on its recommendations for taxation, which could create a significant new divergence from the rest of the UK.
The Commission calls for income tax to be reduced by 10p in the pound in Scotland with a commensurate reduction in the block grant from Westminster. The Scottish Government would have the option to make up the difference by setting its own income tax.
One limitation is that the Scottish variation would apply equally at all rates. Holyrood would not be able to raise the top rate while leaving the standard rate unchanged, or vice-versa. Such a power would threaten the UK's 'social union' according to the Commission.
This is one instance of a general theme in the report, the delicate balancing act between deeper and more accountable devolution, on the one hand, and the continued maintenance of the union on the other.
In this the report reflects its origins. The Calman Commission was created by the Scottish Parliament after Labour, the Conservatives and the Liberal Democrats outvoted the SNP minority government, which opposed the exercise because the option of independence was excluded from its remit.
SNP Constitution Minister Michael Russell welcomed some of the report's proposals for greater powers for Holyrood, but argued that it did not go far enough.
At present, we have a 'pocket money parliament' - under the Calman proposals, Scotland would have a Saturday job but the pay would be deducted from our pocket money. Scotland has to go much further than a system of the Treasury giving with one hand and taking away with the other - which is why the Scottish Parliament and Government need fiscal autonomy and full financial powers.
The report received a warmer reception from Labour Secretary of State for Scotland, Jim Murphy:
The UK Government agrees that financial accountability could be achieved by moving to a system where a greater proportion of the Scottish Parliament's budget comes from their own decisions. We welcome the Commission's model which provides a promising and well evidenced basis on which we can work with the Scottish Parliament and others to bring forward practical proposals.
The suggested changes are complex, and require detailed and careful consideration. Along with Her Majesty's Treasury, we will assess, and explore how to implement these proposals.
Labour, the Conservatives, and the Lib Dems have now set up a steering group to take forward the report's recommendations. That means, as Brian Taylor notes, that it is likely to form the basis of UK government policy whoever wins the next election.
Together with the Scottish Government's National Conversation, the Calman report forms the basis for a struggle between two competing visions of Scotland's future over the next few years.
