41

SUPPLEMENT TO THE VOTES AND PROCEEDINGS

Monday 29 June 2015

Committee of the whole House

Proceedings

Scotland Bill

[Second Day]

CLAUSES 12 TO 17, SCHEDULE 1, CLAUSE 18, NEW CLAUSES RELATING TO PART 2,

NEW SCHEDULES RELATING TO PART 2

Sir Edward Leigh

Withdrawn  124

Clause  12,  page  14,  line  14 ,  at end insert—

“( )    

The Scottish Parliament may determine the level of each threshold of income at

which a Scottish taxpayer becomes liable for income tax at any of the rates set by

the Scottish Parliament;”

Clauses 12 to 14 Agreed to.

Clause 15 Agreed to.

Graham Stringer

Mr Kevan Jones

Not selected  36

Page  19,  line  18,  leave out Clause 16

Clauses 16 and 17 Agreed to.

Schedule 1 Agreed to.

Clause 18 Agreed to.

Committee of the whole House Proceedings: 29 June 2015      

42

Scotland Bill, continued

Ian Murray

Wayne David

Mr Douglas Carswell

Negatived on division  NC1

To move the following Clause—

“Independent Commission on Full Fiscal Autonomy

(1)    

The Secretary of State shall appoint a commission of between four and eleven

members to conduct an analysis of the impact of full fiscal autonomy on the

Scottish economy, labour market and public finances and to report by 31 March

2016.

(2)    

No Member of the House of Commons or of the Scottish Parliament may be a

member of the commission.

(3)    

No employee of the Scottish Government or of any government Department or

agency anywhere in the United Kingdom may be a member of the commission.

(4)    

The Secretary of State shall appoint as members of the commission only persons

who appear to the Secretary of State to hold a relevant qualification or to have

relevant experience.

(5)    

The Secretary of State shall not appoint as a member of the commission any

person who is a member of a political party.

(6)    

Before appointing any member of the commission, the Secretary of State must

consult—

(a)    

the Chair of any select committee appointed by the House of Commons

to consider Scottish affairs, and

(b)    

the Chair of any select committee appointed by the House of Commons

to examine the expenditure, administration and policy of Her Majesty’s

Treasury and its associated public bodies.

(7)    

The Secretary of State may by regulations issue the commission with terms of

reference and guidelines for the commission’s working methods, including an

outline definition of the policy of full fiscal autonomy for the commission to

analyse.

(8)    

The Secretary of State must lay copies of the report of the commission before

both Houses of Parliament, and must transmit a copy of the report of the

commission to the presiding officer of the Scottish Parliament.

(9)    

Regulations under this section must be made by statutory instrument, subject to

annulment in pursuance of a resolution of either House of Parliament.”

Ian Murray

Wayne David

Not called  NC20

To move the following Clause—

“Review of operation of VAT refund schemes in Scotland

(1)    

The Treasury shall, within six months of the day on which this Act is passed,

publish and lay before the House of Commons a review of the application of VAT

refund schemes for businesses in Scotland.

(2)    

The review must include an analysis of the impact of the qualifying criteria for

the VAT refund schemes—

(a)    

in Section 33 of the VAT Act 1994, and

Committee of the whole House Proceedings: 29 June 2015      

43

Scotland Bill, continued

(b)    

for Government Departments and the NHS,

on the level of VAT payable by Police Scotland and by the Scottish Fire and

Rescue Service.”

Ian Murray

Negatived on division  NC21

To move the following Clause—

“The Scottish Office for Budget Responsibility

(1)    

Part 2 of Schedule 5 to the Scotland Act 1998 (specific reservations) is amended

as follows.

(2)    

In Section A1 (fiscal, economic and monetary policy)—

(a)    

For the heading “Exception” substitute “Exceptions”—

(b)    

After that heading, insert—

“The creation of a body corporate, called The Scottish Office for Budget

Responsibility, for the independent scrutiny of Scotland‘s public

finances, including all tax and spending in areas for which the Scottish

Government has legislative competence.””

Mr Graham Allen

Not called  NC23

To move the following Clause—

“Local Discretionary Taxation

Individual local authorities in Scotland shall have the discretion to raise

additional income by levying a tax, in addition to Council Tax and Non-Domestic

Rates, on either residents, occupiers, property owners or visitors in the local

authority or within a discrete area of the local authority.”

Mr Graham Allen

Not called  NC24

To move the following Clause—

“Tax and Economy Forum

(1)    

The Secretary of State shall appoint a Tax and Economy Forum to conduct an

analysis of the impact of the changes in legislative and executive competence

resulting from this Act on the economy, labour market and public finances in

Scotland and in the other parts of the United Kingdom.

Committee of the whole House Proceedings: 29 June 2015      

44

Scotland Bill, continued

(2)    

The Tax and Economy Forum may make recommendations for fiscal reforms

within Scotland, to be considered by the Secretary of State.”

Mr Graham Allen

Not called  NC25

To move the following Clause—

“UK Commission on fiscal powers

(1)    

Within 6 months of the day on which this Act is passed, the Secretary of State

shall appoint a commission to examine the deployment of fiscal powers at local,

devolved and United Kingdom levels.

(2)    

The commission shall comprise between 4 and 6 representatives of any of—

(a)    

the Scottish Parliament,

(b)    

the National Assembly for Wales,

(c)    

the Northern Ireland Assembly,

(d)    

local government,

(e)    

the House of Commons, and

(f)    

the House of Lords.

(3)    

The bodies mentioned in subsection (2) shall select their representatives in any

way they see fit and the chief executive or presiding officer of each of those

bodies shall inform the Secretary of State of the names of the representatives of

those bodies, which may replace their representatives whenever the body

concerned has determined to do so.

(4)    

Subject to subsection (5), the commission may determine its own quorum and

methods of working and must publish a protocol setting out its own terms of

reference.

(5)    

The commission shall keep the operation of fiscal powers under review, making

reports and recommendations as it deems appropriate.

Ian Murray

Wayne David

Not called  NC32

To move the following Clause—

“Treasury Review of the implementation of Scottish rates of income tax

(1)    

The Treasury shall, no later than one year after the date on which this Act is

passed, publish and lay before the House of Commons a review of the

implementation of the Scottish basic rate and any other income tax rates for the

purposes of section 11A of the Income Tax Act 2007.

(2)    

The Treasury review must include—

(a)    

a review of the revised fiscal framework;

(b)    

the tax year to which sections 12 and 13 of this Act will apply, and the

day on which they are due to come into force;

Committee of the whole House Proceedings: 29 June 2015      

45

Scotland Bill, continued

(c)    

the number of staff assigned by the Scottish Government, Revenues

Scotland and Her Majesty’s Revenue and Customs, to the project

implementing the Scottish basic rate, and any other rates;

(d)    

a report on the identification of Scottish taxpayers who will be liable to

pay the Scottish basic rate, and other rates;

(e)    

the rates and bands at which the Scottish basic rate, and any other rates,

have been set by the Scottish Parliament; and

(f)    

a projection of the impact of the Scottish basic rate, and any other rates,

on income tax revenues generated in Scotland and across the UK.”

Angus Robertson

Mike Weir

Dr Eilidh Whiteford

Stewart Hosie

Michelle Thomson

Natalie McGarry

Negatived on division  NC33

To move the following Clause—

“Full fiscal autonomy for Scotland

(1)    

The Scottish Government and the Government of the United Kingdom must enter

into an agreement (the “Economic Agreement”)—

(a)    

setting out a plan for implementation of full fiscal autonomy for

Scotland, and

(b)    

establishing a framework within which the two Governments are to

coordinate their economic and fiscal policies in the context of full fiscal

autonomy for Scotland.

(2)    

Full fiscal autonomy for Scotland means that—

(a)    

the Scottish Parliament and Scottish Government have competence for

determining revenues raised in or as regards Scotland through taxation

and borrowing,

(b)    

the Scottish Parliament and Scottish Government have competence for

determining levels of public expenditure in or as regards Scotland,

in accordance with the amendments made by this Act.

(3)    

The framework mentioned in subsection (1)(b) must in particular include

arrangements for—

(a)    

facilitating fiscal coordination,

(b)    

overseeing economic cooperation,

(c)    

joint responsibilities in areas of mutual interest,

(d)    

safeguarding fiscal sustainability.

(4)    

In determining the terms of the Economic Agreement the two governments must

seek to ensure—

(a)    

the maintenance of monetary stability throughout the United Kingdom,

(b)    

the maintenance and promotion of the single markets in the United

Kingdom and the European Union,

(c)    

that they cooperate in the exercise of their respective functions relating to

the administration and collection of taxes,

(d)    

an equitable and transparent approach to consequences, resources and

rewards,

Committee of the whole House Proceedings: 29 June 2015      

46

Scotland Bill, continued

(e)    

that the Scottish Parliament and the Scottish Government retain the

benefits of increased tax revenues delivered by successful policies

pursued by them,

(f)    

that the Scottish Parliament and the Scottish Government have the

powers necessary to manage the consequences of full fiscal autonomy for

Scotland,

(g)    

that full fiscal autonomy for Scotland is implemented over a period of

time, as the Scottish Parliament and the Scottish Government acquire

capacity to carry out their additional competences.

(5)    

The Economic Agreement is to be entered into as soon as possible and the two

governments must cooperate in good faith with a view to achieving that.

(6)    

As soon as possible after the Economic Agreement is entered into—

(a)    

the Scottish Ministers must lay a copy of it before the Scottish

Parliament, and

(b)    

the Secretary of State must lay a copy of it before both Houses of

Parliament.

(7)    

The two governments must from time to time review the Economic Agreement

and make such amendments to its terms as they may agree with a view to ensuring

that it continues to meet the requirements of this section.

(8)    

Subsection (6) applies to the Economic Agreement as amended as it applies to the

Agreement as entered into.

(9)    

The Secretary of State may, with the agreement of the Scottish Ministers, by

regulations modify this section.

(10)    

A statutory instrument containing regulations under subsection (9) may not be

made unless a draft of the instrument has been laid before and approved by a

resolution of each House of Parliament.”

Angus Robertson

Mike Weir

Dr Eilidh Whiteford

Stewart Hosie

Michelle Thomson

Natalie McGarry

Not selected  NC34

To move the following Clause—

“Tax on profits of corporations etc.

(1)    

The Scotland Act 1998 is amended as follows.

(2)    

In Part 4A (taxation), after Chapter 2 insert—

“Chapter 2A

Tax on profits of corporations etc.

80HB  

Tax on profits of corporations etc.

(1)    

A tax charged on the profits of companies carrying on activities in

Scotland is a devolved tax.

Committee of the whole House Proceedings: 29 June 2015      

47

Scotland Bill, continued

(2)    

For the purposes of this section “company” means any body corporate or

unincorporated association.””

Angus Robertson

Mike Weir

Dr Eilidh Whiteford

Stewart Hosie

Michelle Thomson

Natalie McGarry

Not selected  NC35

To move the following Clause—

“Tax on capital gains

(1)    

The Scotland Act 1998 is amended as follows.

(2)    

In Part 4A (taxation), after Chapter 2A (as inserted by section (tax on profits of

corporations etc.)) insert—

“Chapter 2B

Tax on capital gains

80HC  

Tax on capital gains

A tax charged on the gains (or other benefits) accruing to a Scottish

taxpayer on the disposal of assets is a devolved tax.””

Angus Robertson

Mike Weir

Dr Eilidh Whiteford

Stewart Hosie

Michelle Thomson

Natalie McGarry

Not called  NC51

To move the following Clause—

“Finance and taxation: further provision

(1)    

The Scotland Act 1998 is amended as follows.

(2)    

In section 64 (Scottish consolidated fund)—

(a)    

in subsection (5), for “The Treasury may, after consulting with the

Scottish Ministers” substitute “The Scottish Ministers may, after

consulting with the Treasury”,

(b)    

in subsection (6), omit “, at such times and by such methods as the

Treasury may from time to time determine,”.

(3)    

In section 66(4) (borrowing by the Scottish Ministers), for “any other” substitute

“an Act of the Scottish Parliament or an”.

(4)    

In section 67(3) (lending by the Secretary of State), for “Secretary of State”

substitute “Scottish Ministers”.