Scotland Bill (HL Bill 100)

Scotland BillPage 19

made unless a draft of the instrument has been laid before and approved by a
resolution of the House of Commons.

(13) Any other statutory instrument containing regulations under this section, if
made without a draft having been approved by a resolution of the House of
5Commons, is subject to annulment in pursuance of a resolution of the House of
Commons.

(14) In this section “enactment” includes an enactment contained in subordinate
legislation (within the meaning of the Interpretation Act 1978).

Value added tax

16 10Assignment of VAT

(1) The Scotland Act 1998 is amended as follows.

(2) In section 64 (Scottish Consolidated Fund), after subsection (2) insert—

(2A) The Secretary of State shall in accordance with section 64A pay into the
Fund out of money provided by Parliament any amounts payable
15under that section.”

(3) After that section insert—

64A Assignment of VAT

(1) Where there is an agreement between the Treasury and the Scottish
Ministers for identifying an amount agreed to represent the standard
20rate VAT attributable to Scotland for any period (“the agreed standard
rate amount”), the amount described in subsection (3) is payable under
this section in respect of that period.

(2) Where there is an agreement between the Treasury and the Scottish
Ministers for identifying an amount agreed to represent the reduced
25rate VAT attributable to Scotland for that period (“the agreed reduced
rate amount”), the amount described in subsection (4) is payable under
this section in respect of that period.

(3) The amount payable in accordance with subsection (1) is the amount
obtained by multiplying the agreed standard rate amount by—


30

where SR is the number of percentage points in the rate at which value
added tax is charged under section 2(1) of the Value Added Tax Act
1994 for the period.

(4) The amount payable in accordance with subsection (2) is the amount
35obtained by multiplying the agreed reduced rate amount by—


where RR is the number of percentage points in the rate at which value
added tax is charged under section 29A(1) of the Value Added Tax Act
1994 for the period.

Scotland BillPage 20

(5) The payment of those amounts under section 64(2A) is to be made in
accordance with any agreement between the Treasury and the Scottish
Ministers as to the time of the payment or otherwise.”

(4) The Commissioners for Revenue and Customs Act 2005 is amended as follows.

(5) 5In subsection (2) of section 18 (confidentiality: exceptions) omit “or” after
paragraph (i), and after paragraph (j) insert , or

(k) which is made in connection with (or with anything done with
a view to) the making or implementation of an agreement
referred to in section 64A(1) or (2) of the Scotland Act 1998
10(assignment of VAT).”

(6) After that subsection insert—

(2A) Information disclosed in reliance on subsection (2)(k) may not be
further disclosed without the consent of the Commissioners (which
may be general or specific).”

(7) 15In section 19 (wrongful disclosure) in subsections (1) and (8) after “18(1)” insert
“or (2A)”.

Devolved taxes

17 Tax on carriage of passengers by air

(1) In Part 4A of the Scotland Act 1998, after Chapter 4 insert—

20“CHAPTER 5 Tax on carriage of passengers by air
80L Tax on carriage of passengers by air

A tax charged on the carriage of passengers by air from airports in
Scotland is a devolved tax.”

(2) 25Tax may not be charged in accordance with that provision on the carriage of
passengers boarding aircraft before the date appointed under subsection (7).

(3) Chapter 4 of Part 1 of The Finance Act 1994 (air passenger duty) is amended as
follows.

(4) In section 28(4) (a chargeable passenger is a passenger whose journey begins at
30an airport in the United Kingdom), for “the United Kingdom” substitute
“England, Wales or Northern Ireland”.

(5) In section 31(4B) (exception for passengers departing from airports in
designated region of the United Kingdom) for “the United Kingdom”
substitute “England, Wales or Northern Ireland”.

(6) 35The Air Passenger Duty (Designated Region of the United Kingdom) Order
2001 (S.I. 2001/808S.I. 2001/808) is revoked.

(7) Subsections (3) to (6) have effect in relation to flights beginning on or after such
date as the Treasury appoint by regulations made by statutory instrument.

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18 Tax on commercial exploitation of aggregate

(1) In Part 4A of the Scotland Act 1998, after the Chapter 5 inserted by section 17
insert—

“CHAPTER 6 5Tax on commercial exploitation of aggregate
80M Tax on commercial exploitation of aggregate

(1) A tax which is charged on aggregate when it is subjected to commercial
exploitation in Scotland is a devolved tax.

(2) The tax must not be chargeable when aggregate is subjected to
10commercial exploitation for fuel.

(3) Aggregate is subjected to commercial exploitation for fuel—

(a) when the aggregate is used as fuel;

(b) when the aggregate is subjected to commercial exploitation for
the purpose of extracting or producing anything capable of
15being used as fuel;

(c) when the aggregate becomes subject to an agreement to use it as
mentioned in paragraph (a) or to subject it to commercial
exploitation as mentioned in paragraph (b).”

(2) Tax may not be charged in accordance with that provision on commercial
20exploitation of aggregate which takes place before the date appointed under
subsection (4).

(3) In section 16(2) of the Finance Act 2001 (aggregates levy) for “the United
Kingdom” substitute “England, Wales or Northern Ireland”.

(4) Subsection (3) and Schedule 1 (further amendments relating to the
25disapplication of UK aggregates levy to Scotland) have effect in relation to
commercial exploitation of aggregate which takes place on or after such date
as the Treasury appoint in regulations made by statutory instrument.

19 Devolved taxes: further provision

(1) In section 80A of the Scotland Act 1998 (overview of Part 4A), in subsection
30(1)(b), for “Chapters 3 and 4” substitute “The remaining Chapters”.

(2) The Treasury may by regulations make further provision relating to—

(a) the disapplication of air passenger duty in relation to flights beginning
at airports in Scotland;

(b) the disapplication of aggregates levy in relation to commercial
35exploitation of aggregate in Scotland.

(3) The power conferred by subsection (2) includes power—

(a) to make transitional or saving provision in connection with the coming
into force of section 17 or 18 or Schedule 1;

(b) to amend, repeal, revoke or otherwise modify an enactment, whenever
40passed or made (including this Act).

(4) Section 17(7) and section 18(4) are subject to any provision made by virtue of
subsection (3).

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(5) Regulations under this section must be made by statutory instrument.

(6) A statutory instrument containing regulations under this section which
includes provision amending or repealing a provision of an Act may not be
made unless a draft of the instrument has been laid before and approved by a
5resolution of the House of Commons.

(7) Any other statutory instrument containing regulations under this section, if
made without a draft having been approved by a resolution of the House of
Commons, is subject to annulment in pursuance of a resolution of the House of
Commons.

(8) 10In this section “enactment” includes an enactment contained in subordinate
legislation (within the meaning of the Interpretation Act 1978).

Borrowing

20 Borrowing

(1) The Scotland Act 1998 is amended as follows.

(2) 15Section 66(1) (borrowing by the Scottish Ministers from the Secretary of State)
is amended as follows.

(3) At the end of paragraph (b) omit “and”.

(4) In paragraph (c)—

(a) after “devolved taxes,” omit “or”;

(b) 20after “Scottish rate resolution,” insert “or from amounts payable under
section 64A,”.

(5) After paragraph (c) insert—

(d) any sums which in accordance with rules determined by the
Treasury are required by them to meet current expenditure
25because of an excess of welfare payments over forecast welfare
payments, and

(e) any sums which in accordance with rules made by the Treasury
are required by them to meet current expenditure because of a
Scotland-specific negative economic shock.”

(6) 30After that subsection insert—

(1ZA) In subsection (1)(d) “welfare payments” means—

(a) payments under any provision relating to matters within
exceptions 1 to 10 in Section F1 of Part 2 of Schedule 5 or
exception 1 in Section H3 of that Part, and

(b) 35payments attributable to regulations made by the Scottish
Ministers by virtue of section 29 or 30 of the Scotland Act 2016
(powers in relation to universal credit).”

(7) In section 67(2) and (3A) (lending under section 66(1)) for “£500 million”
substitute “£1.75 billion”.

(8) 40In section 67A (lending for capital expenditure) in subsections (1) and (3) for
“£2.2 billion” substitute “£3 billion”.

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(9) The Treasury may by regulations make transitional or saving provision in
connection with the coming into force of the amendments made by this section.

(10) Regulations under subsection (9) must be made by statutory instrument.

(11) A statutory instrument containing regulations under subsection (9), if made
5without a draft having been approved by a resolution of the House of
Commons, is subject to annulment in pursuance of a resolution of the House of
Commons.

Information

21 Provision of information to the Office for Budget Responsibility

(1) 10The Scotland Act 1998 is amended as follows.

(2) After section 96 (provision of information to the Treasury) insert—

96A Provision of information to the Office for Budget Responsibility

(1) The Office for Budget Responsibility has a right of access at any
reasonable time to all Scottish public finances information which it may
15reasonably require for the purpose of the performance of its duty under
section 4 of the Budget Responsibility and National Audit Act 2011
(duty to examine and report on the sustainability of the public
finances).

(2) The Office is entitled to require from any person holding or accountable
20for any Scottish public finances information any assistance or
explanation which the Office reasonably thinks necessary for that
purpose.

(3) “Scottish public finances information” means information held by the
Scottish Ministers or by any Scottish public authority specified in
25regulations made by the Secretary of State.

(4) This section is subject to any enactment or rule of law which operates
to prohibit or restrict the disclosure of information or the giving of any
assistance or explanation.”

(3) In Schedule 7 (procedure for subordinate legislation), in paragraph 1(2) insert
30at the appropriate place—

“Section 96A Type C”.

Part 3 Welfare benefits and employment support

Welfare benefits

22 35Disability, industrial injuries and carer’s benefits

(1) In Part 2 of Schedule 5 to the Scotland Act 1998, Section F1 (social security
schemes) is amended as follows.

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(2) In the Exceptions, before the paragraph beginning “The subject-matter of
Part II of the Social Work (Scotland) Act 1968” insert—

Exception 1

Any of the following benefits—

(a) 5disability benefits, other than severe disablement benefit or
industrial injuries benefits,

(b) severe disablement benefit, so far as payable in respect of a
relevant person, and

(c) industrial injuries benefits, so far as relating to relevant
10employment or to participation in training for relevant
employment;

but this exception does not except a benefit which is, or which is an
element of, an excluded benefit.

Exception 2

15Carer’s benefits, other than a benefit which is, or which is an element
of, an excluded benefit.”

(3) In the Exceptions, at the beginning of the paragraph beginning “The subject-
matter of Part II of the Social Work (Scotland) Act 1968” insert—

Exception 3”.

(4) 20In the Interpretation provision, after “local taxes.” insert—

““Disability benefit” means a benefit which is normally payable in
respect of—

(a) a significant adverse effect that impairment to a person’s
physical or mental condition has on his or her ability to carry
25out day-to-day activities (for example, looking after yourself,
moving around or communicating), or

(b) a significant need (for example, for attention or for
supervision to avoid substantial danger to anyone) arising
from impairment to a person’s physical or mental condition;

30and for this purpose the adverse effect or need must not be short-
term.

“Severe disablement benefit” means a benefit which is normally
payable in respect of—

(a) a person’s being incapable of work for a period of at least
3528 weeks beginning not later than the person’s 20th birthday,
or

(b) a person’s being incapable of work and disabled for a period
of at least 28 weeks;

and “relevant person”, in relation to severe disablement benefit,
40means a person who is entitled to severe disablement allowance
under section 68 of the Social Security Contributions and Benefits
Act 1992 on the date on which section 22 of the Scotland Act 2016
comes into force as respects severe disablement benefit.

“Industrial injuries benefit” means a benefit which is normally
45payable in respect of—

(a) a person’s having suffered personal injury caused by
accident arising out of and in the course of his or her
employment, or

Scotland BillPage 25

(b) a person’s having developed a disease or personal injury due
to the nature of his or her employment;

and for this purpose “employment” includes participation in
training for employment.

5“Relevant employment”, in relation to industrial injuries benefit,
means employment which—

(a) is employed earner’s employment for the purposes of
section 94 of the Social Security Contributions and Benefits
Act 1992 as at 28 May 2015 (the date of introduction into
10Parliament of the Bill for the Scotland Act 2016), or

(b) would be such employment but for—

(i) the contract purporting to govern the employment
being void, or

(ii) the person concerned not being lawfully employed,

15as a result of a contravention of, or non-compliance with,
provision in or made by virtue of an enactment passed to
protect employees.

“Carer’s benefit” means a benefit which is normally payable in
respect of the regular and substantial provision of care by a person to
20a disabled person; and for this purpose “disabled person” means a
person to whom a disability benefit is normally payable.

“Excluded benefit” means—

(a) a benefit, entitlement to which, or the amount of which, is
normally determined to any extent by reference to a person’s
25income or capital (for example, universal credit under Part 1
of the Welfare Reform Act 2012),

(b) a benefit which is payable out of the National Insurance Fund
(for example, employment and support allowance under
section 1(2)(a) of the Welfare Reform Act 2007), or

(c) 30a benefit payable by way of lump sum in respect of a person’s
having, or having had—

(i) pneumoconiosis,

(ii) byssinosis,

(iii) diffuse mesothelioma,

(iv) 35bilateral diffuse pleural thickening, or

(v) primary carcinoma of the lung where there is
accompanying evidence of one or both of asbestosis
and bilateral diffuse pleural thickening.

“Employment” includes any trade, business, profession, office or
40vocation (and “employed” is to be read accordingly).”

23 Benefits for maternity, funeral and heating expenses

(1) In Part 2 of Schedule 5 to the Scotland Act 1998, Section F1 is amended as
follows.

(2) In the Exceptions, after exception 3 (see section 22(3) above) insert—

45Exception 4

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Providing financial or other assistance for the purposes of meeting or
reducing—

(a) maternity expenses,

(b) funeral expenses, or

(c) 5expenses for heating in cold weather.”

(3) In the Exceptions, for the words from “But the following are not excepted” to
“Act 2000 (discretionary housing payments).” substitute—

Exclusions from exceptions 1 to 10

Nothing in exceptions 1 to 10 is to be read as excepting—

(a) 10the National Insurance Fund,

(b) the Social Fund, or

(c) the provision by a Minister of the Crown of assistance by way
of loan for the purpose of meeting, or helping to meet, an
intermittent expense.”

(4) 15In the Interpretation provision, omit the words from “Paragraph 5(1) of Part 3
of this Schedule” to “it is to be treated as if it were.”

(5) In section 138 of the Social Security Contributions and Benefits Act 1992
(payments out of the social fund) after subsection (4) insert—

(4A) This section has effect in or as regards Scotland as if—

(a) 20references in subsections (1)(a) and (2) to the making of
payments out of the social fund were to the making of payments
by the Scottish Ministers,

(b) the reference in subsection (2) to the Secretary of State were to
the Scottish Ministers, and

(c) 25the reference in subsection (4) to regulations were to regulations
made by the Scottish Ministers.

(4B) Where regulations are made by the Scottish Ministers under this
section—

(a) sections 175(2) and (7) and 176 do not apply, and

(b) 30the regulations are subject to the negative procedure (see
section 28 of the Interpretation and Legislative Reform
(Scotland) Act 2010).

(4C) The power to make an Order in Council under section 30(3) of the
Scotland Act 1998 is exercisable for the purposes of this section as it is
35exercisable for the purposes of that Act.”

24 Discretionary payments: top-up of reserved benefits

In Section F1 of Part 2 of Schedule 5 to the Scotland Act 1998, in the Exceptions,
after exception 4 (see section 23 above) insert—

Exception 5

40Providing financial assistance to an individual who—

(a) is entitled to a reserved benefit, and

(b) appears to require financial assistance, in addition to any
amount the individual receives by way of reserved benefit,
for the purpose, or one of the purposes, for which the benefit
45is being provided.

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This exception does not except discretionary financial assistance in a
reserved benefit.

This exception also does not except providing financial assistance to
meet or help to meet housing costs (as to which, see exception 6).

5This exception also does not except providing financial assistance
where the requirement for it arises from reduction, non-payability or
suspension of a reserved benefit as a result of an individual’s
conduct (for example, non-compliance with work-related
requirements relating to the benefit) unless—

(a) 10the requirement for it also arises from some exceptional event
or exceptional circumstances, and

(b) the requirement for it is immediate.

For the purposes of this exception “reserved benefit” means a benefit
which is to any extent a reserved matter.”

25 15Discretionary housing payments

In Section F1 of Part 2 of Schedule 5 to the Scotland Act 1998, in the Exceptions,
after exception 5 (see section 24 above) insert—

Exception 6

Providing financial assistance to an individual who—

(a) 20is entitled to—

(i) housing benefit, or

(ii) any other reserved benefit payable in respect of a
liability to make rent payments, and

(b) appears to require financial assistance, in addition to any
25amount the individual receives by way of housing benefit or
such other reserved benefit, to meet or help to meet housing
costs.

This exception does not except discretionary financial assistance in a
reserved benefit.

30This exception also does not except providing financial assistance
where the requirement for it arises from reduction, non-payability or
suspension of a reserved benefit as a result of an individual’s
conduct (for example, non-compliance with work-related
requirements relating to the benefit) unless—

(a) 35the requirement for it also arises from some exceptional event
or exceptional circumstances, and

(b) the requirement for it is immediate.

For the purposes of this exception—

  • “rent payments”—

    (a)

    40has the meaning given from time to time by
    paragraph 2 of Schedule 1 to the Universal Credit
    Regulations 2013 (S.I. 2013/376S.I. 2013/376) or any re-enactment
    of that paragraph, or

    (b)

    if at any time universal credit ceases to be payable to
    45anyone, has the meaning given by that paragraph or
    any re-enactment of that paragraph immediately
    before that time;

  • “reserved benefit” means a benefit which is to any extent a
    reserved matter.”

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26 Discretionary payments and assistance

In Section F1 of Part 2 of Schedule 5 to the Scotland Act 1998, in the Exceptions,
for the words from “Providing occasional financial” to “unsettled way of life.”
substitute—

5Exception 7

Providing financial or other assistance to or in respect of individuals
who appear to require it for the purposes of meeting, or helping to
meet, a short-term need that requires to be met to avoid a risk to the
well-being of an individual.

10This exception does not except providing assistance where the
requirement for it arises from reduction, non-payability or
suspension of a benefit as a result of an individual’s conduct (for
example, non-compliance with work-related requirements relating
to the benefit) unless—

(a) 15the requirement for it also arises from some exceptional event
or exceptional circumstances, and

(b) the need is immediate as well as short-term.

Exception 8

Providing occasional financial or other assistance to or in respect of
20individuals who have been or might otherwise be—

(a) in prison, hospital, a residential care establishment or other
institution, or

(b) homeless or otherwise living an unsettled way of life,

and who appear to require the assistance to establish or maintain a
25settled home.”

27 Welfare foods

(1) Part 2 of Schedule 5 to the Scotland Act 1998, Section F1 (social security
schemes) is amended as follows.

(2) In the Exceptions, after exception 8 (see section 26 above) insert—

30Exception 9

The subject-matter of section 13 of the Social Security Act 1988
(benefits under schemes for improving nutrition: pregnant women,
mothers and children).”

(3) In the Interpretation provision, at the end insert—

35“The reference to the subject-matter of section 13 of the Social
Security Act 1988 is to be construed as a reference to it as at the day
on which section 27 of the Scotland Act 2016 comes into force (and,
accordingly, paragraph 5(1) of Part 3 of this Schedule does not apply
to that reference).”

(4) 40Omit Section J5 (welfare foods).

(5) In the Social Security Act 1988, in section 13(2) (benefits under schemes for
improving nutrition: consultation) omit “the Scottish Ministers and”.