quiz Search


ref date:19 Dec 1997 (SI)
London keeps leash on Scots

Scottish taxpayers may have extra tax maximising out at 660 a year if the Scottish parliament was to raise income tax by 3% in the pound. The average tax increase would be around 230.

A small price to pay to get Scotlands interests funded outside Londons control, but will the treasury let it happen?

Inland Revenue officials said yesterday they were trying to get mechanisms in place to be used after 2000, given the Scots parliament became operational in 1999.

The revenue said there work would assume that Labour may well not be the single controlling party in Scotland after the parliamentary elections were held there.

The Scotland Bill "prohibits" the parliament from varying the basic rate of income tax by more than 3%. It provides that income from savings and distributions should be exempted and defines a Scottish taxpayer by reference to the period of time he or she spends in Scotland or as someone with their principal UK home in Scotland.

The Scotland bill also allows continued interference in Scottish issues by the "UK" Treasury to propose amendments to the parliament's tax-varying power in the event of any changes in the "UK' structure.

This is of course wholly unacceptable as the Scots have already voted Westminster out of their lives.