Scotland Bill Is a Missed Opportunity to Prepare Country for Challenges Ahead

Summary

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The world has changed dramatically since the Calman Commission began work in April 2008 (" 'The settled will of the Scottish people' ", The Herald, December 1). Indeed, the collapse of tax revenues in the UK has put at risk much of the social fabric established over past decades. The Scotland Bill published on Tuesday will ultimately be seen as a missed opportunity in restructuring and repositioning the Scottish economy for the fiscal challenges facing our nation in the decades ahead.

Allowing the Scottish Parliament the opportunity to vote on the basic rate of income tax, while denying any oversight of the majority of other tax-raising powers will prove to be a symbolic power, rather than one to change the accountability of Holyrood itself. In order to have any economic impact, the entire structure of the taxation system in Scotland requires a root and branch review. At the core of the original Calman remit was the aspiration of how to "improve the financial accountability of the Scottish Parliament". It is difficult to envisage any economic scenario whereby this objective is met.

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Scotland Bill Is a Missed Opportunity to Prepare Country for Challenges Ahead

The Bill does, however, address one glaring anomaly since devolution - that of access to borrowing facilities for the Scottish Government. Such borrowings have long been required by Holyrood and are an absolute necessity in times of economic stress.

However, the ability to raise funds is once again compromised by the lack of taxation powe...

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