Scotland Bill

Page 23, line 6, at end insert—

“80CA Referendum on increasing Scottish rate of income tax

(1) This subsection applies if the motion tabled by a member of the Scottish Government for a Scottish rate resolution proposes that the basic, higher or additional rate of income tax for a tax year for Scottish taxpayers is to be above the rates set for taxpayers in the rest of the United Kingdom as determined under section 6(2) of the Income Tax Act 2007.

(2) If subsection (1) applies Her Majesty must by Order in Council cause a referendum to be held throughout Scotland about whether the basic, higher or additional rate (as the case may be) of income tax for the relevant tax year for Scottish taxpayers should be set as proposed in the motion.

(3) If the majority of the voters in a referendum held by virtue of subsection (2) vote in favour of the proposed rate or rates of income tax the Scottish Parliament may consider the motion for a Scottish rate resolution under section 80C.

(4) But if they do not, the Income Tax Acts have effect for that year in respect of the rate of income tax that was the subject of the referendum.

(5) For further provision about referendums held by virtue of this section see Schedule (Referendums on commencement of sections 30 to 32 or increasing Scottish rate of income tax).”

Page 23, line 6, at end insert—

“(9) This section is subject to section (Referendum about Scottish rate of income tax).”

Insert the following new Clause—

“Referendum about Scottish rate of income tax

Referendum about Scottish rate of income tax

(1) Her Majesty may by Order in Council cause a referendum to be held throughout Scotland about whether sections 30 to 32 should come into force.

(2) If the majority of the voters in a referendum held by virtue of subsection (1) vote in favour of those sections coming into force, they are to come into force in accordance with section (Commencement of sections 30 to 32).

(3) But if they do not, that does not prevent the making of a subsequent Order in Council under subsection (1).

(4) No recommendation is to be made to Her Majesty in Council to make an Order in Council under subsection (1) unless a draft of the statutory instrument containing the Order in Council has been laid before, and approved by a resolution of, each House of Parliament and the Scottish Parliament.

(5) But subsection (4) is not satisfied unless the resolution of the Scottish Parliament is passed on a vote in which the number of members of the Parliament voting in favour of it is not less than two-thirds of the total number of seats in the Parliament.

(6) A draft of a statutory instrument containing an Order in Council under subsection (1) may not be laid before either House of Parliament, or the Scottish Parliament, until the Secretary of State has undertaken such consultation as the Secretary of State considers appropriate.

(7) For further provision about referendums held by virtue of subsection (1) see Schedule (Referendums on commencement of sections 30 to 32).”

Insert the following new Clause—

“Proposal for referendum by Scottish Parliament

(1) This section applies if—

(a) the Scottish Parliament passes a resolution moved by the First Minister or a Scottish Minister that, in its opinion, a recommendation should be made to Her Majesty in Council to make an Order in Council under section (Referendum about Scottish rate of income tax)(1), and

(b) the resolution of the Scottish Parliament is passed on a vote in which the number of members of the Parliament voting in favour of it is not less than two-thirds of the total number of seats in the Parliament.

(2) The First Minister must, as soon as is reasonably practicable after the resolution is passed, ensure that notice in writing of the resolution is given to the Secretary of State.

(3) The Secretary of State must, within the period of 120 days beginning immediately after the day on which it is received—

(a) lay a draft of a statutory instrument containing an Order in Council under section (Referendum about Scottish rate of income tax)(1) before each House of Parliament, or

(b) give notice in writing to the First Minister of the Secretary of State’s refusal to do so and the reasons for that refusal.

(4) As soon as is reasonably practicable after the First Minister receives notice given under subsection (3)(b)—

(a) the First Minister must lay a copy of the notice before the Scottish Parliament, and

(b) the Scottish Parliament must ensure that the notice is published.”

Insert the following new Clause—

“Commencement of sections 30 to 32

(1) This section applies where the majority of the voters in a referendum held by virtue of section (Referendum about Scottish rate of income tax)(1) are in favour of sections 30 to 32 coming into force.

(2) The Secretary of State may by order make provision for sections 30 to 32 to come into force on the date specified in the order.

(3) No order is to be made under subsection (2) unless a draft of the statutory instrument containing it has been laid before, and approved by a resolution of, each House of Parliament.”

Page 32, line 31, leave out “section 30(7)” and insert “sections 30 to 32”

Page 32, line 34, leave out paragraph (a)

Page 32, line 39, leave out paragraph (a)

Page 32, line 40, at end insert—

“( ) Sections 30 to 32 come into force in accordance with section (Commencement of sections 30 to 32),”

Insert the following new Schedule—

“SCHEDULE Referendums on commencement of sections 30 to 32 or increasing Scottish rate of income tax Entitlement to vote

1 (1) The persons entitled to vote in a referendum held by virtue of section (Referendum about Scottish rate of income tax)(1) or (Referendum on increasing rate of Scottish income tax) are those who would be entitled to vote in a general election of Scottish Parliament members if one were held on the date of the poll at the referendum.

(2) But an Order in Council under section (Referendum about Scottish rate of income tax)(1) or (Referendum on increasing rate of Scottish income tax) may include provision for disregarding alterations made in a register of electors after a specified date.

Conduct etc of referendum

2 (1) An Order in Council under section (Referendum about Scottish rate of income tax)(1) or (Referendum on increasing rate of Scottish income tax) may make provision for and in connection with the referendum which it causes to be held.

(2) Such an Order in Council may, in particular, apply or incorporate, with or without modification, any enactment relating to referendums, elections or donations.

(3) In sub-paragraph (2) “donations” means anything which is or corresponds to a donation within the meaning of Part 4 of the Political Parties, Elections and Referendums Act 2000.

Referendum question and statement

3 (1) An Order in Council under section (Referendum about Scottish rate of income tax)(1) or (Referendum on increasing rate of Scottish income tax)—

(a) must specify the question to be included on the ballot paper at the referendum which it causes to be held, and

(b) may specify a statement to precede the question on that ballot paper.

(2) The Secretary of State must, no later than the time at which paragraph (b) of section 104(4) of the Political Parties, Elections and Referendums Act 2000 (report stating views as to intelligibility of referendum question expressed by Electoral Commission) is complied with, send to the First Minister a copy of the report laid before Parliament under that paragraph.

(3) As soon as is reasonably practicable after the First Minister receives a copy of a report under sub-paragraph (2) the First Minister must lay a copy of the report before the Scottish Parliament.

Date of referendum

4 (1) An Order in Council under section (Referendum about Scottish rate of income tax)(1) or (Referendum of increasing rate of Scottish income tax) must specify the date of the poll at the referendum which it causes to be held.

(2) The Secretary of State may by order vary the date of the poll specified in such an Order in Council (including a date previously set by virtue of this sub-paragraph) if it appears inappropriate for it to be held on that date.

(3) No order may be made under sub-paragraph (2) without the consent of the Scottish Ministers.

(4) A statutory instrument containing an order under sub-paragraph (2) is subject to annulment in pursuance of a resolution of either House of Parliament.

Referendum period

5 An Order in Council under section (Referendum about Scottish rate of income tax)(1) or (Referendum on increasing rate of Scottish income tax) must determine the referendum period for the purposes of Part 7 of the Political Parties, Elections and Referendums Act 2000 in the case of the referendum which it causes to be held.

Combination of polls

6 An Order in Council under section (Referendum about Scottish rate of income tax)(1) or (Referendum on increasing rate of Scottish income tax) may make provision for and in connection with the combination of the poll at the referendum which it causes to be held with that at an election or at another referendum (or both).

Encouraging voting

7 An Order in Council under section (Referendum about Scottish rate of income tax)(1) or (Referendum on increasing rate of Scottish income tax) may authorise or require the Electoral Commission to do things for the purpose of encouraging voting in the referendum which it causes to be held (including imposing obligations or conferring powers on counting officers or other persons).

Provision of information to voters

8 (1) This paragraph applies in relation to a referendum held by virtue of section (Referendum about Scottish rate of income tax)(1) or (Referendum on increasing rate of Scottish income tax) if the Electoral Commission have not, before the appropriate day, designated an organisation under section 108 of the Political Parties, Elections and Referendums Act 2000 (organisations to whom assistance is available under section 110 of that Act) in relation to each possible outcome of the referendum.

(2) The Electoral Commission may take such steps as they think appropriate to provide such information for persons entitled to vote in the referendum as the Commission think is likely to promote awareness among those persons about the arguments for each answer to the referendum question.

(3) Information provided in pursuance of sub-paragraph (2) must be provided by whatever means the Electoral Commission think is most likely to secure (in the most cost-effective way) that the information comes to the notice of everyone entitled to vote in the referendum.

(4) In this paragraph “the appropriate day” means—

(a) if an order is made under section 109(6) of the Political Parties, Elections and Referendums Act 2000 (variation of period for applications for designation under section 108 or period for determination of applications or both) in the case of the referendum, such day as that order specifies as the appropriate day,

(b) if no such order is made and one or more applications are made in relation to each possible outcome of the referendum before the 29th day of the referendum period, the 43rd day of the referendum period, and

(c) in any other case in which no such order is made, the 29th day of the referendum period.

Referendum material

9 Section 126 of the Political Parties, Elections and Referendums Act 2000 (details to appear on referendum material) does not apply to any material published for the purposes of a referendum held by virtue of section (Referendum about Scottish rate of income tax)(1) or (Referendum on increasing rate of Scottish income tax) if the publication is required under or by virtue of the Order in Council that causes the referendum to be held.

Funding and accounts

10 An Order in Council under section (Referendum about Scottish rate of income tax)(1) or (Referendum on increasing rate of Scottish income tax) must include provision for the funding of costs of the referendum which it causes to be held (and may, in particular, include provision for the costs to be charged on, or payable out of, the Scottish Consolidated Fund).

11 An Order in Council under section (Referendum about Scottish rate of income tax)(1) or (Referendum on increasing rate of Scottish income tax) must include provision as to the preparation and audit of accounts relating to payments made by virtue of provision included in the Order in Council under paragraph 10.

No legal challenge to referendum result

12 (1) No court may entertain any proceedings for questioning the number of ballot papers counted or votes cast in a referendum held by virtue of section (Referendum about Scottish rate of income tax)(1) or (Referendum on increasing rate of Scottish income tax) as certified by the Chief Counting Officer or a counting officer unless—

(a) the proceedings are brought by a claim for judicial review, and

(b) the claim form is filed before the end of the permitted period.

(2) In sub-paragraph (1) “the permitted period” means the period of six weeks beginning with—

(a) the date on which the Chief Counting Officer or counting officer gives a certificate as to the number of ballot papers counted and votes cast in the referendum, or

(b) if the Chief Counting Officer or counting officer gives more than one such certificate, the date on which the last is given.

Supplementary

13 An Order in Council under section (Referendum about Scottish rate of income tax)(1) or (Referendum on increasing rate of Scottish income tax) may include provision creating criminal offences.

Interpretation

14 Expressions used in this Schedule and in Part 7 of the Political Parties, Elections and Referendums Act 2000 have the same meaning in this Schedule as in that Part.”