Scotland Bill

REVISED
MARSHALLED
LIST OF AMENDMENTS
TO BE MOVED
ON REPORT

The amendments have been marshalled in accordance with the Order to be considered on 26th March 2012, as follows—

Clauses 1 to 9
Schedule 1
Clauses 10 to 12
Schedule 2
Clauses 13 to 29
Schedule 3
Clauses 30 to 33
Schedule 4
Clauses 34 and 35
Schedule 5
Clauses 36 to 45

[Amendments marked * are new or have been altered]

Clause 7

LORD WALLACE OF TANKERNESS

1

Leave out Clause 7

Before Clause 10

LORD FORSYTH OF DRUMLEAN

LORD HANNAY OF CHISWICK

LORD SUTHERLAND OF HOUNDWOOD

LORD FOULKES OF CUMNOCK

1A*

Insert the following new Clause—

“Legislative competence: amendment to the 1998 Act

In section 29 of the 1998 Act (legislative competence) after subsection (2)(d) insert—

“(da) it would result in residents in England, Wales or Northern Ireland being treated differently to citizens from other EU member states.””

LORD FORSYTH OF DRUMLEAN

2

Insert the following new Clause—

“Referendum about Scottish independence: further provision

(1) Any referendum held in pursuance of the provisions of section 30 of the Scotland Act 1998 shall not take place until nine months after every Secretary of State has laid before both Houses of Parliament a paper prepared by their department setting out the implications of an independent Scotland—

(a) to that department and its executive agencies,

(b) for that department’s policies, and

(c) for that department’s planned expenditure.

(2) Any referendum held in pursuance of the provisions of section 30 of the Scotland Act 1998 shall be administered by the Electoral Commission with a single question relating to the future position of Scotland in the United Kingdom.”

Clause 11

THE EARL OF SHREWSBURY

3

Page 9, line 6, at end insert—

“( ) If a system of Visitors Permits is introduced, holders of a firearm certificate or a shot gun certificate issued elsewhere in the UK shall not be required to obtain a Scottish Visitors Permit in respect of air weapons.”

Clause 12

LORD WALLACE OF TANKERNESS

4

Leave out Clause 12

Schedule 2

LORD WALLACE OF TANKERNESS

5

Leave out Schedule 2

6

[Re-tabled as Amendment 24A]

Clause 13

LORD WALLACE OF TANKERNESS

7

Leave out Clause 13

8

[Re-tabled as Amendment 1A]

Clause 21

LADY SALTOUN OF ABERNETHY

LORD BROWNE OF LADYTON

LORD BOYD OF DUNCANSBY

LORD DAVIDSON OF GLEN CLOVA

9

Page 14, line 8, leave out “Scottish Crown Estate Commissioner” and insert “Crown Estate Commissioner with special responsibility for Scotland”

LADY SALTOUN OF ABERNETHY

10

Page 14, line 13, leave out “Scottish Crown Estate Commissioner” and insert “Crown Estate Commissioner with special responsibility for Scotland”

LORD BROWNE OF LADYTON

LORD BOYD OF DUNCANSBY

LORD DAVIDSON OF GLEN CLOVA

11

Page 14, line 14, leave out from first “of” to end of line 15 and insert “Scottish Ministers with the agreement of the Chancellor of the Exchequer”

Clause 24

LORD FORSYTH OF DRUMLEAN

12

Page 16, line 23, after “of” insert “all classes of”

13

Page 16, line 24, at end insert—

“( ) provision to set penalties for speeding and drink driving offences on special roads in Scotland; and

( ) provision for random breath testing for alcohol of motorists on special roads in Scotland.”

Clause 26

LORD WALLACE OF TANKERNESS

14

Leave out Clause 26

Clause 27

LORD FORSYTH OF DRUMLEAN

15

Page 19, line 34, leave out from beginning to end of line 24 on page 20

LORD BROWNE OF LADYTON

LORD DAVIDSON OF GLEN CLOVA

LORD BOYD OF DUNCANSBY

16

Page 20, line 24, at end insert—

“(7) The use of an Order in Council under subsection (1) of this section shall be assessed against the following criteria—

(a) the potential for the new tax to create or incentivise economic distortions and arbitrage within the UK;

(b) the potential the new tax might create for tax avoidance across the UK;

(c) the impact of the proposed tax on compliance burdens across the UK; and

(d) the compatibility of the new tax with EU Legislation and Rules, such as those covering State Aid and the Single Market, and the Human Rights Act.

(8) In proposing an additional devolved tax under subsection (1) of this section, the Scottish Parliament shall provide evidence in support of the criteria specified under subsection (7), including in particular—

(a) the rationale for the devolution of such a tax;

(b) the intended tax base, taxable activity and expected revenue;

(c) an assessment of the expected distributional impact, including the impact on business and individuals and the wider economic impact;

(d) an assessment of compatibility with the Human Rights Act, EU State Aid rules and other directives;

(e) plans for the collection and administration of the tax, including means of ensuring compliance; and

(f) an assessment of any interaction of the proposed new Scottish tax with UK-wide taxes, including plans to protect policy and geographical borders.”

LORD FORSYTH OF DRUMLEAN

17

Page 20, line 24, at end insert—

“(3) In section 29 (Legislative competence) in subsection (2), at the end insert—

“(f) it would make provision about a devolved tax”.”

After Clause 27

LORD FORSYTH OF DRUMLEAN

18

Insert the following new Clause—

“Changes to United Kingdom income tax which are detrimental to the income of the Scottish Government

(1) In this section, a “change to the United Kingdom income tax system” refers to any change to the operation of personal income taxation in the United Kingdom, including but not limited to personal allowances and tax rates, introduced by an Act passed by Parliament.

(2) The Office for Budget Responsibility shall assess the impact of each change to the United Kingdom income tax system and publish its assessment of whether the change decreases the total income tax take.

(3) In preparing a report under subsection (2), the Office for Budget Responsibility shall choose the number of years in which it wishes to assess the impact of each change to the United Kingdom income tax system.

(4) If any assessment conducted under subsection (2) indicates that the United Kingdom Government’s income tax take in any tax year will decrease, then—

(a) there shall be no related increase in grant funding provided to the Scottish Government;

(b) a Scottish rate resolution under section 80C of the Scotland Act 1998 may not be passed or replaced solely to reflect any consequent decrease in income accruing to the Scottish Government;

(c) the Scottish Parliament may by resolution (a “Scottish allowance resolution”) adjust the personal allowances set out in sections 35 to 37 of the Income Tax Act 2007 to increase the income of the Scottish Government up to the level it would have been prior to the change assessed in the report made under subsection (2).

(5) A Scottish allowance resolution made under subsection (4)(c)—

(a) applies for only one tax year, and for the whole of that year,

(b) must specify the tax year for which it applies,

(c) must be made before the start of that tax year,

(d) should set personal allowances for each of sections 35, 36 and 37 of the Income Tax Act 2007, and set no other allowances, and

(e) may only apply to a tax year which has been the subject of a published assessment by the Office for Budget Responsibility in a report prepared under subsection (2).

(6) If a Scottish allowance resolution is cancelled before the start of the tax year for which it is to apply—

(a) the Income Tax Acts have effect for that year as if the resolution had never been passed, and

(b) the resolution may be replaced by another Scottish allowance resolution.

(7) Standing orders must provide that only a member of the Scottish Government may move a motion for a Scottish allowance resolution.

(8) The provisions of subsection (4)(a) and (b) shall apply to any tax year that has been the subject of an assessment conducted under subsection (2).

(9) The Income Tax Act 2007 is adjusted as follows.

(10) In section 35 (personal allowance for those aged under 65), at the end insert—

“(5) If the individual is a Scottish taxpayer under Chapter 2 of Part 4A of the Scotland Act 1998 then the personal allowance in subsection (1) may be adjusted to any amount set out by the Scottish Parliament in a Scottish allowance resolution.

(6) Section (Changes to United Kingdom income tax which are detrimental to the income of the Scottish Government) of the Scotland Act 2012 makes provision about the setting of the personal allowance for Scottish taxpayers.”

(11) In section 36 (personal allowance for those aged 65 to 74), at the end insert—

“(4) If the individual is a Scottish taxpayer under Chapter 2 of Part 4A of the Scotland Act 1998 then the personal allowance in subsection (1) may be adjusted to any amount set out by the Scottish Parliament in a Scottish allowance resolution.

(5) Section (Changes to United Kingdom income tax which are detrimental to the income of the Scottish Government) of the Scotland Act 2012 makes provision about the setting of the personal allowance for Scottish taxpayers.”

(12) In section 37 (personal allowance for those aged 75 and over), at the end insert—

“(4) If the individual is a Scottish taxpayer under Chapter 2 of Part 4A of the Scotland Act 1998 then the personal allowance in subsection (1) may be adjusted to any amount set out by the Scottish Parliament in a Scottish allowance resolution.

(5) Section (Changes to United Kingdom income tax which are detrimental to the income of the Scottish Government) of the Scotland Act 2012 makes provision about the setting of the personal allowance for Scottish taxpayers.””

Clause 29

LORD FORSYTH OF DRUMLEAN

19

Page 22, line 10, leave out “or C” and insert “, C or D”

20

Page 22, line 10, at end insert—

“(1A) If the activity which allows T to meet conditions A, B, C or D is undertaken for some but not all of the tax year then T shall be a Scottish taxpayer only for that period of the year and a UK taxpayer for the remainder of it.”

21

Page 22, line 21, at end insert—

“( ) T meets condition D if, for the whole or any part of the year, T is a serving full-time member of the armed forces and has a close connection with Scotland (see section 80E) arising from a place or places of residence that is or are not rented from or otherwise provided by their employer.”

After Clause 31

LORD FORSYTH OF DRUMLEAN

22

Insert the following new Clause—

“Scottish rate of income tax: transitional costs

(1) Prior to their coming into force, the Secretary of State shall publish an impact assessment setting out the costs of sections 29, 30 and 31.

(2) A draft version of the impact assessment to be published under subsection (1) must be sent to the Scottish Government and to the Presiding Officer of the Scottish Parliament.

(3) Upon receipt of the draft impact assessment under subsection (2), the Scottish Government shall have 28 days to prepare and deliver any response that it should wish to make to the Secretary of State, and during this time, the Secretary of State must not publish the completed impact assessment.

(4) The Secretary of State may choose to take into consideration the response received from the Scottish Government but is not required to do so.

(5) The consultation process set out in subsections (2), (3) and (4) may be repeated.

(6) At the time of publication of the impact assessment under subsection (1), the Secretary of State shall also publish all responses that the Secretary of State has received from the Scottish Government under subsection (3).

(7) The costs of sections 29, 30 and 31 identified by the impact assessment shall be borne by the Scottish Government.”

23

Insert the following new Clause—

“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 29 to 31 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 29 to 31).

(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 29 to 31).”

24

Insert the following new Clause—

“Proposal for referendum for 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.”

Before Schedule 4

LORD FORSYTH OF DRUMLEAN

24A*

Insert the following new Schedule—

“SCHEDULE Referendums on commencement of sections 29 to 31 Entitlement to vote

1 (1) The persons entitled to vote in a referedum held by virtue of section (Referendum about Scottish rate of income tax)(1) 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) 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) 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)—

(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) 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) 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) 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) 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) 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 referenedum held by virtue of section (Referendum about Scottish rate of income tax)(1) 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) 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) 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) 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 rates of income tax)(1) 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.”

After Clause 35

LORD FORSYTH OF DRUMLEAN

25

Insert the following new Clause—

“Air passenger duty

(1) In Part 4A of the 1998 Act (as inserted by section 27), after Chapter 4 (inserted by section 34) insert—

“CHAPTER 5 Air passenger duty

80L Air passenger duty

(1) A duty of excise which is levied on the carriage, from a Scottish airport, of chargeable passengers on chargeable aircraft, is a devolved tax.

(2) In this section—

“chargeable passenger” refers, subject to sections 31 and 32 of the Finance Act 1994, to every passenger on an aircraft if their flight begins at an airport in Scotland on or after the date appointed under section (Disapplication of UK air passenger duty)(3) of the Scotland Act 2012;

“chargeable aircraft” refers, subject to section 29 of the Finance Act 1994, to every aircraft designed or adapted to carry persons in addition to the flight crew.””

26

Insert the following new Clause—

“Disapplication of UK air passenger duty

(1) Part 1 of the Finance Act 1994 (Customs and Excise) is amended as follows.

(2) In section 28(4) (air passenger duty) for “the United Kingdom” substitute “England and Wales or Northern Ireland”.

(3) This section has effect in relation to carriage that occurs on or after such date as is appointed by the Treasury by order under this subsection.”

27

Insert the following new Clause—

“Aggregates levy

(1) In Part 4A of the 1998 Act (as inserted by section 27), after Chapter 5 (inserted by section 35A) insert—

“CHAPTER 6 Aggregates Levy

80M Aggregates levy

(1) A levy charged on aggregate subjected to commercial exploitation is a devolved tax.

(2) In this section “aggregate” means (subject to subsections (4) and (5) below)—

(a) any rock, gravel or sand, together with whatever substances are for the time being incorporated in the rock, gravel or sand or naturally occur mixed with it, and

(b) the spoil, waste, off-cuts and other by-products resulting from the application of any exempt process to any aggregate;

but does not mean anything else resulting from the application of exempt process to any aggregate.

(3) In this section any quantity of aggregate is, in relation to any occasion on which it is subjected to commercial exploitation, a quantity of taxable aggregate except to the extent that—

(a) it is exempt under subsections (4) and (5);

(b) it has previously been used for construction purposes (whether before or after the commencement date);

(c) it is, or derives from, any aggregate that has already been subjected to a charge to aggregates levy in the United Kingdom;

(d) it is aggregate that on the commencement date is on a site other than—

(i) its originating site, or

(ii) a site that is required to be registered under the name of a person who is the operator, or one of the operators, of that originating site.

(4) Aggregate is exempt under this section if—

(a) it consists wholly of aggregate won by being removed from the ground on the site of any building or proposed building in the course of excavations lawfully carried out—

(i) in connection with the modification or erection of the building; and

(ii) exclusively for the purpose of laying foundations or of laying any pipe or cable;

(b) it consists wholly of aggregate won—

(i) by being removed from the bed of any river, canal or watercourse (whether natural or artificial) or of any channel in or approach to any port or harbour (whether natural or artificial); and

(ii) in the course of the carrying out of any dredging undertaken exclusively for the purpose of creating, restoring, improving or maintaining that river, canal, watercourse, channel or approach;

(c) it consists wholly of aggregate won by being removed from the ground along the line or proposed line of any highway or proposed highway and in the course of excavations carried out—

(i) for the purpose of improving or maintaining the highway or of constructing the proposed highway; and

(ii) not for the purpose of extracting that aggregate;

(d) it consists wholly of aggregate won by being removed from the ground along the line or proposed line of any railway, tramway or monorail or proposed railway, tramway or monorail and in the course of excavations carried out—

(i) for the purpose of improving or maintaining the railway, tramway or monorail or of constructing the proposed railway, tramway or monorail; and

(ii) not for the purpose of extracting that aggregate;

(e) it consists wholly of spoil, waste or other by-products, not including the overburden, resulting from the extraction or other separation from any quantity of aggregate of any china clay or ball clay; or

(f) it consists wholly of the spoil from any process by which—

(i) coal, lignite, slate or shale, or

(ii) a substance listed in subsection (5)(b),

has been separated from other rock after being extracted or won with that other rock.

(5) For the purposes of this Part, a quantity of any aggregate shall be taken to be a quantity of aggregate that is exempt under this section if it consists wholly or mainly of any one or more of the following, or is part of anything so consisting, namely—

(a) coal, lignite, slate or shale;

(b) the spoil or waste from, or other by-products of —

(i) any industrial combustion process, or

(ii) the smelting or refining of metal;

(c) the drill cuttings resulting from any operations carried out in accordance with a licence granted under the Petroleum Act 1988;

(d) anything resulting from works carried out in exercise of powers which are required to be exercised in accordance with, or are conferred by, provision made by or under the New Roads and Street Works Act 1991; or

(e) clay, soil or vegetable or other organic matter.

(6) For the purposes of subsection (3)(c), aggregate subjected to exploitation in Scotland is aggregate that has already been subjected to a charge to aggregates levy if, and only if—

(a) there has been a previous occasion on which a charge to aggregates levy on that aggregate has arisen; and

(b) at least some of the aggregates levy previously charged on that aggregate is either—

(i) levy in respect of which there is or was no entitlement to a tax credit; or

(ii) levy in respect of which any entitlement to a tax credit is or was an entitlement to a tax credit of an amount less than the amount of the levy charged on it.

(7) For the purposes of subsection (5)(b), any credit the entitlement to which arises in a case which—

(a) falls within section 30(1)(c) or 30A of the Finance Act 2001, and

(b) is prescribed for the purposes of this subsection, shall be disregarded.

(8) In this section—

“coal” has the same meaning as in the Coal Industry Act 1994;

“highway” includes any road within the meaning of the Roads (Scotland) Act 1984;

“exempt process” means

(a) the cutting of any rock to produce (stone with one or more flat surfaces);

(b) any process by which a relevant substance is extracted or otherwise separated (whether as part of the process of winning it from any land or otherwise) from any aggregate;

(c) any process for the production of lime or cement from limestone or from limestone and (anything else); and

“relevant substance” means any of the following—

(a) anhydrite;

(b) ball clay;

(c) barytes;

(d) china clay;

(e) feldspar;

(f) fireclay;

(g) fluorspar;

(h) fuller’s earth;

(i) gems and semi-precious stones;

(j) gypsum;

(k) any metal or the ore of any metal;

(l) muscovite;

(m) perlite;

(n) potash;

(o) pumice;

(p) rock phospates;

(q) sodium chloride;

(r) talc; or

(s) vermiculite.

(9) The Treasury may by order made by statutory instrument—

(a) modify the list of relevant substances in subsection (8) by adding any substance to that list or by removing any substance from it; and

(b) make any such transitional provision in connection with the modification of that list under this subsection as they may think fit.

(10) The Treasury shall not make an order under subsection (9) by virtue of which any substance ceases to be a relevant substance unless a draft of the order has been laid before Parliament and approved by a resolution of the House of Commons.

(11) A statutory instrument containing an order under subsection (9) that has not had to be approved in draft for the purposes of subsection (10) shall be subject to annulment in pursuance of a resolution of the House of Commons.

(12) Duty may not be charged in accordance with the provision inserted by this section if the exploitation occurs before the date appointed under section (Disapplication of United Kingdom Aggregates Levy)(4) of the Scotland Act 2012.””

28

Insert the following new Clause—

“Disapplication of United Kingdom Aggregates Levy

(1) Part 2 of the Finance Act 2001 (Aggregates Levy) is amended as follows.

(2) For any reference to “the United Kingdom” substitute “England and Wales or Northern Ireland”.

(3) For any reference to “United Kingdom waters” substitute “English, Welsh or Northern Irish waters”.

(4) This section has effect in relation to exploitation of aggregates that occurs on or after such date as is appointed by the Treasury by order under this subsection.”

After Clause 36

LORD WALLACE OF TANKERNESS

29

Insert the following new Clause—

“Reports on the implementation and operation of this Part

(1) The Secretary of State must—

(a) make reports on the implementation and operation of this Part (see subsection (5)),

(b) lay a copy of each report before both Houses of Parliament, and

(c) send a copy of each report to the Scottish Ministers, who must lay a copy of it before the Scottish Parliament.

(2) The Scottish Ministers must—

(a) make reports on the implementation and operation of this Part (see subsection (5)),

(b) lay a copy of each report before the Scottish Parliament, and

(c) send a copy of each report to the Secretary of State, who must lay a copy of it before both Houses of Parliament.

(3) A report must be made under each of subsections (1) and (2)—

(a) before the end of the period of one year beginning with the day on which this Act is passed, and

(b) thereafter, before the end of each subsequent period of one year until the final reports are made under subsection (4).

(4) Final reports must be made on or as soon as practicable after—

(a) 1 April 2020, or

(b) if later, the first anniversary of the day on which the last of the provisions of this Part comes into force.

(5) A report on the implementation and operation of this Part must include—

(a) a statement of the steps which have been taken, whether by the maker of the report or by others, since the making of the previous report (or, in the case of the first report, since the passing of this Act) towards the commencement of the provisions of this Part,

(b) a statement of the steps which the maker of the report proposes should be taken, whether by the maker of the report or by others, towards the commencement of the provisions of this Part,

(c) an assessment of the operation of the provisions of this Part which have been commenced,

(d) an assessment of the operation of any other powers to devolve taxes to the Scottish Parliament or to change the powers of the Scottish Ministers to borrow money, and of any other changes affecting the provisions inserted or amended by this Part,

(e) the effect of this Part on the amount of any payments made by the Secretary of State under section 64(2) of the 1998 Act (payments into the Scottish Consolidated Fund), and

(f) any other matters concerning the sources of revenue for the Scottish Administration (within the meaning of section 126(6) of the 1998 Act) which the maker of the report considers should be brought to the attention of the Parliament of the United Kingdom or the Scottish Parliament.”

LORD BARNETT

30

Insert the following new Clause—

“Allocation of public funds to Scotland

(1) The allocation of public funds to Scotland shall be based on a needs assessment, rather than the population basis of the Barnett formula.

(2) The Chancellor of the Exchequer shall, by order, establish a commission—

(a) to agree a methodology for assessing Scotland’s needs; and

(b) periodically to review the allocation of public funds to Scotland in the light of its needs.

(3) The first review by the commission must be completed no later than 1 April 2015.

(4) The new Barnett formula should be implemented no later than 1 April 2016.”

LORD FORSYTH OF DRUMLEAN

31

Insert the following new Clause—

“Allocation of public funds to Scotland (No. 2)

(1) The allocation of public funds to Scotland shall be based on a needs assessment, rather than the population basis of the Barnett formula.

(2) The Chancellor of the Exchequer shall, by order, establish a commission—

(a) to agree a methodology for assessing Scotland’s needs; and

(b) periodically to review the allocation of public funds to Scotland in the light of its needs.

(3) The first review by the commission must be completed no later than 1 April 2015.

32

Insert the following new Clause—

“Scottish Consolidated Fund

(1) The 1998 Act is amended as follows.

(2) In section 64 (Scottish Consolidated Fund), for subsections (6) and (7) substitute—

“(6) Scottish Ministers may retain in the Scottish Consolidated Fund any amount not paid out under section 65, and may carry forward such surpluses from one financial year to the next.””

Clause 37

LORD WALLACE OF TANKERNESS

33

Page 29, line 26, after “question” insert “, arising in criminal proceedings, as to—

(a)”

LORD MCCLUSKEY

34

Page 29, line 26, after “whether” insert “—

(a)”

LORD WALLACE OF TANKERNESS

35

Page 29, line 30, at end insert “, or

(b) whether an Act of the Scottish Parliament or any provision of an Act of the Scottish Parliament is incompatible with any of the Convention rights or with EU law.”

LORD MCCLUSKEY

36

Page 29, line 30, at end insert “, or

(b) an Act of the Scottish Parliament or any provision of an Act of the Scottish Parliament is outside the legislative competence of the Parliament as being incompatible with any of the Convention rights or with EU law.”

After Clause 37

LORD WALLACE OF TANKERNESS

37

Insert the following new Clause—

“References of compatibility issues to the High Court or Supreme Court

In the Criminal Procedure (Scotland) Act 1995, after section 288ZA (inserted by section 37) insert—

“288ZB References of compatibility issues to the High Court or Supreme Court

(1) Where a compatibility issue has arisen in criminal proceedings before a court, other than a court consisting of two or more judges of the High Court, the court may, instead of determining it, refer the issue to the High Court.

(2) The Lord Advocate or the Advocate General for Scotland, if a party to criminal proceedings before a court, other than a court consisting of two or more judges of the High Court, may require the court to refer to the High Court any compatibility issue which has arisen in the proceedings.

(3) The High Court may, instead of determining a compatibility issue referred to it under subsection (2), refer it to the Supreme Court.

(4) Where a compatibility issue has arisen in criminal proceedings before a court consisting of two or more judges of the High Court, otherwise than on a reference, the court may, instead of determining it, refer it to the Supreme Court.

(5) On a reference to the Supreme Court under this section—

(a) the powers of the Supreme Court are exercisable only for the purpose of determining the compatibility issue;

(b) for that purpose the Court may make any change in the formulation of that issue that it thinks necessary in the interests of justice.

(6) When it has determined a compatibility issue on a reference under this section, the Supreme Court must remit the proceedings to the High Court.

(7) An issue referred to the High Court or the Supreme Court under this section is referred to it for determination.

(8) In this section “compatibility issue” has the meaning given by section 288ZA.””

Clause 38

LORD WALLACE OF TANKERNESS

38

Page 30, line 23, at end insert—

“( ) In section 102 (powers of courts or tribunals to vary retrospective decisions)—

(a) in subsection (4)(b) at the end insert “or to a compatibility issue,”;

(b) after subsection (5) insert—

“(5A) Where the decision mentioned in subsection (1) is a decision of the Supreme Court on a compatibility issue, the power to make an order under this section is exercisable by the High Court of Justiciary instead of the Supreme Court.”;

(c) in subsection (7) before the definition of “intimation” insert—

““compatibility issue” has the meaning given by section 288ZA of the Criminal Procedure (Scotland) Act 1995.””

39

Page 30, leave out lines 26 to 29 and insert—

“But a question arising in criminal proceedings in Scotland that would, apart from this paragraph, be a devolution issue is not a devolution issue if (however formulated) it relates to the compatibility with any of the Convention rights or with EU law of—

(a) an Act of the Scottish Parliament or any provision of an Act of the Scottish Parliament,

(b) a function,

(c) the purported or proposed exercise of a function,

(d) a failure to act.”

LORD MCCLUSKEY

40

Page 31, line 5, after “only” insert—

“(a) after the final determination of the proceedings, except in the case of a determination on a reference under subsection (1) of section 288AB or in pursuance of subsection (2) of that section, and

(b) ”

LORD WALLACE OF TANKERNESS

41

Page 31, line 6, leave out “court that made the determination” and insert “High Court”

LORD MCCLUSKEY

42

Page 31, line 7, at end insert—

“(c) if the court certifies that the compatibility issue raises a point of law of general public public importance.”

43

Page 31, line 7, at end insert—

“(5A) The High Court must give reasons for its decision to grant or withhold a certificate under subsection (5)(c), but that decision is final.

(5B) Permission under subsection (5)(c) may be given only if it appears to the court in question that the point is one that ought to be considered by the Supreme Court.”

LORD WALLACE OF TANKERNESS

44

Page 31, line 10, leave out from second “the” to “or” in line 12 and insert “determination against which the appeal lies,”

LORD MCCLUSKEY

45

Page 31, line 12, after “288(2A)” insert “or subsection (1) of section 288AB or in pursuance of subsection (2) or subsection (5) of that section”

46

Page 31, line 20, at end insert—

“288AB References to High Court and Supreme Court: compatibility issues

(1) A court, other than any court of two or more judges of the High Court, may refer any compatibility issues which have arisen in criminal proceedings before it to the High Court for determination.

(2) The Lord Advocate or the Advocate General for Scotland may require any court other than a court of two or more judges of the High Court to refer any compatibility issue which has arisen in criminal proceedings before it to the High Court for determination.

(3) Where the High Court considers that determination of a compatibility issue on a reference under subsection (1) or in pursuance of subsection (2) is necessary to enable the proceedings before the court making the reference to be finally determined, the High Court must—

(a) determine the issue, or

(b) if it considers that the issue raises a point of law of general public importance that ought to be considered by the Supreme Court (without first being determined by the High Court), refer the issue to the Supreme Court for determination.

(4) Where the High Court does not consider that determination of the compatibility issue is necessary for that purpose, the High Court may (but need not) determine the issue.

(5) If the Lord Advocate, or the Advocate General for Scotland, considers that in any criminal proceedings there arises a compatibility issue involving a point of law of general public importance he may, at any stage of those proceedings, require the High Court to refer the compatibility issue to the Supreme Court for determination.

(6) Subsections (3) and (4) of section 288AA apply in relation to a reference to the Supreme Court under subsection (3)(b) or (5) of this section as they apply in relation to an appeal under that section.

(7) In this section “compatibility issue” has the same meaning as in section 288ZA.”

LORD WALLACE OF TANKERNESS

47

Page 31, line 29, leave out “section” and insert “sections 288ZB and”

LORD MCCLUSKEY

48

Page 31, line 29, leave out “section 288AA” and insert “sections 288AA and 288AB”

LORD WALLACE OF TANKERNESS

49

Page 31, line 29, at end insert—

“( ) after “purposes of” insert “a reference under section 288ZB or”;”

LORD MCCLUSKEY

50

Page 31, line 30, at end insert—

“(c) after “that Schedule” insert “or a reference under or in pursuance of section 288AB of this Act”.”

After Clause 38

LORD WALLACE OF TANKERNESS

51

Insert the following new Clause—

“Time limits for appeals on devolution issues in criminal proceedings

In Schedule 6 to the 1998 Act (devolution issues) after paragraph 13 insert—

“13A In criminal proceedings, an application to the High Court for permission under paragraph 13 must be made—

(a) within 28 days of the date of the determination against which the appeal lies, or

(b) within such longer period as the High Court considers equitable having regard to all the circumstances.

13B In criminal proceedings, an application to the Supreme Court for permission under paragraph 13 must be made—

(a) within 28 days of the date on which the High Court refused permission under that paragraph, or

(b) within such longer period as the Supreme Court considers equitable having regard to all the circumstances.””

52

Insert the following new Clause—

“Review and power to amend sections 37 to (Time limits for appeals on devolution issues in criminal proceedings)

(1) The Secretary of State must arrange—

(a) for a review of the provision made by sections 37 to (Time limits for appeals on devolution issues in criminal proceedings),

(b) for a report of the conclusions of the review to be made to the Secretary of State, and

(c) for a copy of the report to be given to the Scottish Ministers.

(2) The review must be carried out as soon as practicable after the end of 3 years beginning with the day on which section 38(5) comes into force, or earlier if the Secretary of State considers it appropriate.

(3) The review must—

(a) consider whether changes should be made to the provision made by sections 37 to (Time limits for appeals on devolution issues in criminal proceedings);

(b) consider whether further provision should be made in relation to any matter dealt with by those sections;

(c) consider (in particular) whether an appeal to the Supreme Court on a compatibility issue should lie only if the High Court of Justiciary certifies that the issue raises a point of law of general public importance.”

(4) The Secretary of State may by order—

(a) amend the provision made by sections 37 to (Time limits for appeals on devolution issues in criminal proceedings);

(b) make further provision in relation to any matter dealt with by those sections.

(5) Provision made by order under subsection (4) may—

(a) amend, repeal or revoke an enactment passed or made before the order is made;

(b) confer power on the Secretary of State or the Scottish Ministers to make an order or regulations;

(c) include consequential, transitional or saving provision.

(6) In this section “enactment” includes an enactment contained in subordinate legislation (within the meaning of the Interpretation Act 1978) and an enactment contained in, or in an instrument made under, an Act of the Scottish Parliament.

(7) In making the first order under subsection (4) the Secretary of State must take into account the report made in accordance with subsection (1)(b).

(8) No order under subsection (4) may be made unless the Secretary of State has consulted the Scottish Ministers.

(9) A statutory instrument containing an order under subsection (4) may not be made unless a draft of the instrument has been laid before and approved by a resolution of each House of Parliament.”

Clause 42

LORD WALLACE OF TANKERNESS

53

Page 32, line 36, leave out “section 39” and insert “the preceding provisions of this Part”

54

Page 32, line 38, leave out “section 39” and insert “the preceding provisions of this Part”

Clause 44

LORD FORSYTH OF DRUMLEAN

55

Page 33, line 39, leave out “section 29(7)” and insert “sections 29 to 31”

56

Page 33, line 42, leave out paragraph (a)

57

Page 34, line 1, at end insert—

“(d) sections (Air passenger duty) and (Disapplication of UK air passenger duty).”

58

Page 34, line 1, at end insert—

“(e) sections (Aggregates levy) and (Disapplication of United Kingdom Aggregates Levy).”

LORD FORSYTH OF DRUMLEAN

LORD HANNAY OF CHISWICK

LORD SUTHERLAND OF HOUNDWOOD

LORD FOULKES OF CUMNOCK

59

Page 34, line 1, at end insert—

“(3A) The Secretary of State shall lay before both Houses of Parliament a report explaining the impact of Section (Legislative competence: amendment to the 1998 Act) on universities and other further education institutions.

(3B) Section (Legislative competence: amendment to the 1998 Act) comes into force after—

(a) twelve months, beginning on the day on which this Act is passed, have passed, and

(b) the Secretary of State has laid before both Houses of Parliament the report required in subsection (3A).”

LORD FORSYTH OF DRUMLEAN

60

Page 34, line 4, leave out paragraph (a)

61

Page 34, line 5, at end insert—

“( ) Sections 29 to 31 come into force in accordance with section (Commencement of sections 29 to 31).”

After Clause 44

LORD FORSYTH OF DRUMLEAN

62

Insert the following new Clause—

“Commencement of sections 29 to 31

(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 29 to 31 coming into force.

(2) The Secretary of State may by order make provision for sections 29 to 31 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.

(4) No order is to be made under subsection (2) unless an impact assessment has been published in accordance with section (Scottish rate of income tax: transitional costs)(1).”

Prepared 26th March 2012