Today we will… Explain the background to the Scotland Act (2016) Describe the reaction to the Scotland Act (2016)

Success Criteria I can answer HOTS questions the Scotland Act (2016) I can list the extra powers that the Scotland Act (2016) has given the Scottish Parliament. I can paraphrase the main ideas behind the Smith Commission

The Scotland Act (2016) Following the 2014 Independence Referendum, a commission was established to review the devolution settlement and make recommendations for the future of the Scottish Parliament. The cross-party Smith Commission on further devolution recommended the Scottish Parliament be given new powers over some taxes and welfare payments. The commission's chair, Lord Smith, said the changes would "deliver a stronger parliament, a more accountable parliament and a more autonomous parliament". Lord Smith, the man who chaired the commission on Scotland's devolution settlement, has said the Scotland Bill (now the Scotland Act 2016) honours the agreement that was reached.

Background to the Scotland Act 2016 In the run-up to the Scottish independence referendum of Sept. 2014 the leaders of the three main UK parties came together to promise that if Scotland voted to remain within the UK, the Scottish Parliament would be given further substantial powers. This promise became known as the ‘Vow’. Some political commentators have said the vow was a panicked reaction from UK leaders when the opinion polls showed support for independence at around 50%.

Extra Powers for the Scottish Parliament In response to the vow, the UK government established the Smith Commission (chaired by Lord Smith of Kelvin) to review further devolution. Smith reported in late 2014 stating that the Scottish Parliament should be given further powers in the areas of taxation and welfare spending. It also stated that the Scottish Parliament should become a permanent institution and that the SP should be given the power to lower the voting age in Scotland to 16 years of age. Further the SP will also have control over abortion law. The Scotland Act 2016 saw new powers over areas including income tax, VAT receipts, welfare and benefits passed to the Scottish Parliament.

The Smith Commission’s report formed the basis of the Scotland Bill (2015). Under the provisions of the Bill, the Scottish Parliament was given the power to set rates and bands of income tax from April 2017, keep half of all VAT receipts, and be given the ability to top up welfare benefits and create new payments. The Scotland Act (2016) also made the Scottish Parliament a permanent institution and the SP has already been given the power to lower the voting age to 16 years. This was used for the first time in the SP elections in April 2016. What might Holyrood tax revenues be? Tax types Revenues (billions) Income tax £10.2bn VAT £4bn Council tax £2.4bn Non-domestic rates £2.2bn Stamp duty land tax £0.3bn Landfill tax £0.1bn Aggregate levy TOTAL £19.3bn If you are a Scottish tax payer who earns between £43-45,000 you are subject to a higher tax rate than someone who lives elsewhere in the UK.

Reaction to the Scotland Act (2016) Political opinion on the provisions of the Scotland Act (2016) is divided. Some, including those who support independence, believe the Act still does not go far enough in giving Scotland all the powers it needs to provide ‘Scottish solutions to Scottish problems’. For example, the SNP wanted the SP to have full control over child and working tax credits and for the SP to be given the power to decide whether and when to hold a second referendum on independence. Labour also argued for the Scottish Parliament to keep all VAT revenues. However, the Conservatives, led by Secretary of State for Scotland David Mundell MP, said the Act made the Scottish Parliament the most powerful devolved assembly in the world. He added it was time for the political parties in Scotland to work together to make the new powers a success for Scotland.

The Scotland Act (2016) What was the ‘Vow’? For what reason do some political commentators believe the ‘Vow’ was promised? According to the Smith Commission, in which two important areas will the Scottish Parliament be given extra powers? Give two other important points contained within the Scotland Act (2016)? What differences are there between independence supporters and the Secretary of State for Scotland over the extra powers contained in the Scotland Act (2016)?