Taxing Question!

In September 1998, we voted Yes, Yes.

Yes to a Scottish Parliament and Yes to it having tax raising (or lowering) powers.

To date, no-one had ever seriously considered tampering with the taxation. This would be understandable in the infancy of a newly established parliament.

However, it has now been about for approaching 10 years and if ever there is a time when the electorate needed tax cuts, during a recession would be one of them.

That is presumably why the Lib Dems are arguing for a 2p income tax reduction as part of their budget negotiations. Now we all know how that went.

But what about this “tax raising powers”?

The SNP know all full well that it would be practically impossible for them to reduce income tax in Scotland.

Firstly, imagine the outcry from the rest of the UK. It is almost worth doing it for that!!

Secondly, it would just mean that the amount of money they would have for the following year’s budget would be reduced by about 10%. With no means of raising our own income we would be totally stuffed

Now, from what I heard on Newsnight Scotland, the Lib Dems have restricted their bargaining over the budget to the SNP making a strong submission to the Calman Commission for the Scottish Parliament to have greater tax raising powers.

Will the SNP even entertain the Calman Commission? Will the Lib Dems consider voting down the Scottish budget a second time?

Either way, until the issue of greater financial independence is addressed, no responsible Scottish Government can entertain reducing the income tax in Scotland.