Source: https://www2.gov.scot/Publications/2011/03/scotland-bill-amendments
Timestamp: 2020-01-21 05:48:18
Document Index: 432494580

Matched Legal Cases: ['art 4', 'art 2', 'art 4', 'art 1', 'art 2', 'art 1', 'art 2']

Scottish Government’s proposed amendments to the Scotland Bill following the recommendations of the Scotland Bill Committee
Scottish Government’s proposed amendments to the S
4. Short Term borrowing and managing risk
5. Capital borrowing / bonds
8. BBC Trust
10. Drink-driving limits
12. Administration of elections
13. International obligations
14. Devolution issues and the acts of the Lord Advocate
Other Implementation Issue
Scotland Bill Committee recommendations (amendments numbered)
The Committee recommends that initially any changes to income tax in Scotland would affect all tax bands uniformly, but consideration should be given to the Scottish Parliament having the power to vary the higher rates of income tax independently in the future.
Bill could be amended to build in a power to vary higher rates, or a more general enabling power to enable changes to be made to the Scottish Income Tax scheme in the light of experience or development.
This change could also be done by primary legislation in a future UK budget Bill.
New section 80C of the Scotland Act 1998 (as inserted by clause 26(3) of the Bill) makes clear that if a Scottish rate resolution is cancelled and not replaced, Scottish taxpayers would simply pay income tax at a rate 10 percentage points less than the UK rate for the relevant tax year. The Scottish Parliament will therefore have to pass a timely resolution each year so as to avoid a large gap in the Scottish budget being created by the absence of a Scottish rate. The Scottish Government wants to ensure that the Scottish Parliament has the flexibility to set the rate after the UK Budget, even shortly after the start of the tax year.
The amendment therefore provides a contingency if no Scottish Rate resolution was passed or if it was passed after the beginning of the tax year and would permit such a resolution to be passed after the beginning of the tax year (but no later than one month into that year).
The Committee recommends that Aggregates Levy should be included in the Bill and devolved to Scotland.
This would require the Bill to be amended.
The Aggregates levy could also be added to devolved taxes using the more general power proposed in the Bill (by Order requiring agreement of both the SP and Westminster).
The Committee recommends that Air Passenger Duty should be devolved once the Government has completed its current review.
Would not require amendment but draft is available.
APD could be added to devolved taxes using the more general power proposed in the Bill (by Order requiring agreement of both the SP and Westminster).
The Committee recommends that the Scottish budget should not be required to meet the cost if tax receipts fall below forecast levels. The Committee recommends that this condition be removed from the Bill.
The Committee recommends that the short-term annual borrowing limit should be increased from £500 million to around £1 billion.
The Committee welcomes the idea of a Scottish Cash Reserve, but proposes going further to ensure that this includes all Scottish End Year Flexibility saved in Scotland without the need for Treasury agreement, so in future Scottish ministers will have total discretion over the Scottish budget
This would require amendment to the Bill
This would not require amendment to the Bill.
The limits for borrowing could also be changed by powers given to the Secretary of State for Scotland and the Treasury in the Bill, or in a future UK finance Bill.
Committee recommendation Amendments required Comments
The Committee welcomes new capital borrowing power, but recommends higher limits and earlier introduction.
The Committee recommends that the limit for prudential borrowing should be increased from £2.2 billion to around £5 billion.
Scottish ministers should have complete discretion over what this money is spent on without having to seek agreement from the Treasury.
Borrowing powers should be brought forward earlier in the next Scottish Parliament.
The Scottish Parliament should have the power to borrow directly from the markets by issuing bonds.
The limits for borrowing could also be changed by powers given to the S of S and the Treasury in the Bill, or in a future UK finance Bill.
While this could be done in a future UK finance Bill, it is closely connected with the purpose of this Bill.
There should be a new Joint Exchequer Committee (replacing the proposed bilateral tax committee) with statutory underpinning, which will meet regularly to resolve differences on matters such as the scope for new taxes and the level of grant and will monitor HMRC costs.
Statutory underpinning of the Committee would require amendment to the Bill.
While this could be done in a future UK finance Bill, it is closely connected what the purpose of this Bill.
Given the need for further discussion on this issue, it would not be appropriate to provide an amendment at this stage.
The Committee recommends that the transitional period for the introduction of new grant arrangements should be shortened or done away with after new tax powers are introduced.
HMRC should be legally accountable to both the Scottish and Westminster Parliaments. HMRC costs need to be challenged and scrutinised by both the Scottish Government and the Scottish Parliament.
The Scottish Auditor General should be given power to scrutinise HMRC with respect to the cost and collection of tax in Scotland.
HMRC accountability would require amendment to the Bill.
The Committee welcomes the power for the Scottish Parliament to create new devolved taxes ( eg a graduate tax or a Land Value Tax) and seeks formal assurance that the UK Government will not unreasonably withhold its agreement for any new proposals.
The Committee recommends that Corporation Tax should not be devolved in the Scotland Bill, but recognises that changes to Corporation Tax can be a tool for economic development and does not rule out a scheme for devolving Corporation Tax in the future as part of wider reform across the devolved nations.
Bill could be amended to build a future power over corporation tax.
Corporation tax also be added to devolved taxes using the more general power proposed in the Bill (by Order requiring agreement of both the SP and Westminster), or in a future UK finance Bill (especially for a UK wide scheme).
Future Scottish Grant adjustment
The Committee sets out a possible mechanism for grant reduction and indexation following the introduction of a Scottish income tax rate. The Committee proposes that this should be formally reviewed after a period of 10 or 15 years.
The Committee agrees that control over air weapons should be devolved.
The Committee agrees that the Scottish Parliament should retain the right to deal with the winding up of Registered Social Landlords.
This would require amendment to the Bill.
This needs to be implemented in the Bill. It could not be done in a future UK Bill.
8. BBC Trust member for Scotland and MG Alba
The Committee recommends that Scottish ministers might be given the power to appoint board members to BBC Alba.
MG Alba appointments would require amendment to the Bill.
Arguably, this is not connected to the Bill - which deals with the BBC Trust - and could be done in future UK Bill.
The Committee proposes a range of amendments to improve the accountability of the Crown Estate and its Commissioners to Scottish ministers and Parliament, and recommends a review of all the options, including full devolution of the Crown Estate.
Bill would require amendment to give Scottish Ministers a greater role in the appointment of a Crown Estate Commissioners for Scotland, and a statutory right to be consulted on the Secretary of State for Scotland's power of direction.
Although these could be done in a future UK Bill, Committee made clear these changes should be made in this Bill notwithstanding any wider review of the Crown Estate, not later legislation.
The Committee recommends that drink driving limits, and further powers of enforcement (eg penalties and responsibility for random testing), should be devolved.
This would require amendment of the Bill.
These are closely connected to this Bill and the Committee proposed that these changes should be made in this Bill not later legislation.
The Committee recommends that speed limits should be devolved.
The Committee recommends that the Scottish Parliament should have greater power over elections.
The Committee recommends the UK Government review or drop the proposed International Obligations clause, which could potentially mean the UK Government acquiring powers in devolved areas.
This would need to be done in this Bill. It could not be done in future legislation.
Issues not in Bill
Committee recommendations Amendments required Comments
The Committee says that the devolution of Council Tax Benefit would be welcome.
This measure is planned for the UK Welfare Reform Bill. No amendment required in the Scotland Bill.
The Committee recommends new inter-governmental committee should be created to review the impact of any welfare proposals, calls for formal UK commitment to consult devolved institutions on tax and benefit reform and any interaction with devolved responsibilities.
The Committee support the further devolution of marine conservation issues and recommends that the UK Government should conduct a review as soon as possible.
The Committee could not give its consent to proposals from Lord Wallace relating to the final court of appeal for Scottish cases relating to ECHR, because the relevant amendments have not been published.
This will require amendment to the Bill.
The Committee noted that it 'not had the opportunity to consider [Scottish Government's amendments] in detail but there should be scope for the Scottish Parliament to be consulted about the implementation of the new powers, as was implied in the UK Government's plan'.
There is a lack of information in a number of important areas, including:
· proposals for adjusting block grant;
· operation of "no detriment" policy;
· implementation and running costs;
· length of the transitional period for the income tax arrangements;
· detail about how often the system will be reviewed;
· detailed rules around the operation of the Scottish Rate of Income Tax, including how it will relate to reliefs for charitable contributions and savings products;
· process for forecasting and reconciling tax receipts;
· remit and role of the planned new Intergovernmental Committee on Fiscal Devolution;
· the devolution of Air Passenger Duty.
Scottish Government view: In the light of the hugely important "unknowns" in the UK Government's proposals, the Bill should include a specific mechanism to allow the Scottish Parliament to consider further the financial proposals in the Scotland Bill before they are brought into effect.
Illustrative text of amendments for Scotland Bill Committee recommendations
(1) The Scotland Bill is amended as follows.
(2) In clause 26(3), in new section 80C-
(a) leave out subsection (1) and insert-
"(1) The Scottish Parliament may by resolution (a "Scottish rate resolution") set the Scottish rate for the purpose of calculating each of the rates of income tax to be paid by Scottish taxpayers.",
(b) for subsection (4) substitute-
"(4) A Scottish rate resolution may specify a different rate for each rate of income tax.",
(c) for subsection (6)(b) substitute-
"(b) must be made no later than one month after the start of that tax year, and",
(d) after subsection (6) insert-
"(6A) Subsection (6B) applies if, one month after the start of a tax year, there is no Scottish rate resolution for the year.
(6B) The Scottish rate for that tax year is-
(a) where there was a Scottish rate resolution for the immediately preceding tax year, the rate set by that resolution,
(b) where there was no such resolution, 10 percentage points.",
(e) for subsection (7) substitute-
"(7) If a Scottish rate resolution is cancelled before the end of one month after the start of the tax year for which it is to apply, the resolution may be replaced by another Scottish rate resolution.".
(3) In clause 27(2), in new subsection (2B), for Step 3 substitute-
Add the Scottish rate for that rate for that year."
(4) In Schedule 3, in paragraph 1, for sub-paragraph (4) substitute-
"(4) In Schedule 7 (procedure for subordinate legislation)-
(a) in paragraph 1, for the entry in the table relating to section 79 substitute-
"80G | Type DA",
(b) in the Note relating to the entry for section 79-
(i) for "section 79" substitute "section 80G",
(ii) for "section 79(3) substitute "section 80G(3)", and
(iii) for "Type E" substitute "Type DA",
(c) in paragraph 2, after the entry for Type D insert-
" Type DA: No Minister of the Crown is to make the legislation unless a draft of the instrument-
(a) has been laid before, and approved by resolution of, the House of Commons, and
(b) has been laid before, and approved by resolution of, the Parliament.".".
1 Scottish tax on quarrying or mining
(1) In Part 4A of the 1998 Act (as inserted by section 24), after Chapter 4A (inserted by section 1) insert-
" Chapter 4B
80M Tax on quarrying and mining
A tax charged on quarrying or mining in Scotland is a devolved tax.".
(2) A tax may not be charged in accordance with the provisions inserted by this section on quarrying or mining unless section 8 (disapplication of aggregates levy) has effect in relation to that quarrying or mining.
2 Disapplication of aggregates levy
(1) Part 2 of the Finance Act 2001 (c.9) (aggregates levy) is amended as follows.
(2) In section 16(2) (charge to aggregates levy), for "the United Kingdom" substitute "England and Wales or Northern Ireland".
(3) [Further provisions amending the legislation on aggregates levy so that it doesn't apply in Scotland].
(4) This section has effect in relation to quarrying or mining carried out on or after such date as is appointed by the Treasury, with the consent of the Scottish Parliament, under this subsection.
(b) standing orders must provide that only a member of the Scottish Government may move a motion for such a resolution.
1 Scottish tax on air travel
(1) In Part 4A of the 1998 Act (as inserted by section 24), after Chapter 4 (inserted by section 30) insert-
" Chapter 4A
80L Tax on air travel
A tax charged on air travel to or from Scotland is a devolved tax.".
(2) A tax may not be charged in accordance with the provisions inserted by this section on air travel unless section 6 (disapplication of air passenger duty) has effect in relation to that travel.
2 Disapplication of air passenger duty
(1) Chapter 4 of Part 1 of the Finance Act 1994 (c.9) (air passenger duty) is amended as follows.
(2) In section 28(4) (Air Passenger Duty), omit "the United Kingdom" and substitute "England and Wales or Northern Ireland".
(3) [Further provisions amending the legislation on air passenger duty so that it doesn't apply in Scotland].
(4) This section has effect in relation to air travel taking place on or after such date as is appointed by the Treasury, with the consent of the Scottish Parliament, under this subsection.
(1) Clause 32 of the Scotland Bill is amended as follows.
(a) for new subsection (1)(c) substitute-
"(c) any sums which are required by them to meet [current] expenditure because of a shortfall, or anticipated shortfall, in receipts from the Scottish rate of income tax or devolved taxes.",
(b) after new subsection (1) insert-
"(1ZA) In borrowing sums under subsection (1), the Scottish Ministers must have regard to any code of practice agreed by them and the Treasury.
(1ZB) A code of practice agreed under subsection (1ZA) may include provision as to-
(c) limits on the aggregate at any time outstanding in respect of the principal of sums borrowed.",
(3) For subsections (6) and (7) substitute-
"(6) Omit subsections (2) and (3).".
(2) In clause 32-
(a) in subsection (3)-
(i) in new subsection (1A), for ", with the approval of the Treasury, borrow by way of loan" substitute "borrow",
(ii) after new subsection (1B) insert-
"(1C) In borrowing any sums under subsection (1A), the Scottish Ministers must have regard to any code of practice agreed by them and the Treasury.
(1D) A code of practice agreed under subsection (1C) may include provision as to-
(b) in subsection (9), in new section 67A, omit subsections (1) to (3),
(c) omit subsection (10).
1 Scottish corporation tax
80L Scottish corporation tax
A tax charged on the profits of bodies corporate, [Scottish partnerships] and unincorporated associations) is a devolved tax."
(2) A tax may not be charged in accordance with the provisions inserted by this section on profits unless section 2 (disapplication of corporation tax) has effect.
2 Disapplication of corporation tax
(1) The Corporation Tax Act 2009 (c.4) is amended as follows.
(2) In section 1328(1) (extent), omit ", Scotland".
(3) [Further provisions amending the legislation on corporation tax so that it doesn't apply in Scotland].
(4) This section has effect in relation to profits [earned][made] on or after such date as is appointed by the Treasury, with the consent of the Scottish Parliament, under this subsection.
1 Insolvency: social landlords etc.
(2) For clause 12(4) substitute-
"(4) In the Exceptions-
(a) omit the first paragraph (process, effect on diligence, and prior transactions), and
(b) for the second paragraph (social landlords) substitute-
<In relation to social landlords-
(a) the process of winding up, including the person having responsibility for the conduct of a winding up or any part of it, and that person's conduct of it or of that part,
(b) the effect of winding up on diligence,
(c) avoidance and adjustment of prior transactions on winding up, and
(d) the following additional exceptions in so far as they relate to a moratorium on the disposal of property held by a social landlord and the management and disposal of such property-
(i) the general legal effect of winding up,
(ii) procedures for the initiation of winding up,
(iii) powers of courts in relation to proceedings for winding up, and
(iv) procedures giving protection from creditors.>"
(3) After clause 12(4) insert-
"(4A) For the definition of "social landlord" substitute-
<"social landlord" means-
(a) a company for the purposes of the Companies Act 2006, or
(b) a society registered under the Co-operative and Community Benefit Societies and Credit Unions Act 1965,
which satisfies the criteria set out in paragraphs (a) to (c) of section 24(1) of the Housing (Scotland) Act 2010.>"
(4) In paragraph 4 of Schedule 2, for "definitions of "social landlord" and" substitute "definition of".
1 Appointment of members and chairman of MG Alba
(2) After clause 17 insert-
" 17A Appointment of members and chairman of MG Alba
(1) The Broadcasting Act 1990 is amended as follows.
(2) In section 183A (membership of Seirbheis nam Meadhanan Gàidhlig (the Gaelic Media Service))-
(a) in subsection (4), for "Secretary of State" substitute "Scottish Ministers",
(b) in subsection (6), for "Secretary of State" substitute "Scottish Ministers".".
1 Crown Estate
" 17B Crown Estate Commissioners: Secretary of State's power of direction
(1) Section 1 of the Crown Estate Act 1961 (continuance of Crown Estate Commissioner etc.) is amended as follows.
(2) In subsection (4), after "Commissioners" where it third occurs insert "and, in matters relating exclusively to Scotland, the Scottish Ministers".
"(4A) The Secretary of State must from time to time consult the Scottish Ministers as to whether or not the Secretary of State should exercise the power in subsection (4) to give directions in respect of any matters relating exclusively to Scotland.".
(3) In clause 18, in subsection (3), in new sub-paragraph (4A), for "consult" substitute "obtain the agreement of".
(2) In clause 20, after subsection (10) insert-
"(11) In Part 2 of Schedule 5 to the 1998 Act (reserved matters: specific reservations), in Section E1, after the exception add
"The regulation of prescribed limits, the imposition of penalties in relation to offences connected with driving whilst under the influence of alcohol, and the regulation of the power to administer preliminary tests.".
(2) In clause 21 (speed limits)-
(a) after subsection (7), insert-
"(7A) Section 86 (speed limits for particular classes of vehicle) is amended as follows.
(7B) In each of subsections (2), (5) and (6), for "Secretary of State" substitute "national authority".
(7C) After subsection (6) add-
(a) in relation to roads in England and Wales, is the Secretary of State;
(b) in relation to roads in Scotland, is the Scottish Ministers.".",
(b) after subsection (14) insert-
"(15) In section 134 (provisions as to regulations)-
(a) in subsection (4), after "86" insert "(other than those made by the Scottish Ministers)",
(b) in subsection (5), after "section" insert "86 by the Scottish Ministers, or under section".".
(3) In clause 22 (speed limits: supplementary), in subsection (2), for paragraph (b) substitute-
"(b) omit paragraph (f) (sections 86(2) and 88(1) and (4)).".
1 Administration of elections - regional vacancies
(2) In clause 1-
(a) in subsection (2), leave out paragraphs (b) and (c),
(b) omit subsection (4),
(c) in subsection (9), in new section 12A-
(i) in subsection (1)-
(A) after paragraph (b) insert "and",
(B) omit paragraph (d),
(ii) omit subsection (3).
2 Administration of elections - consultation
(1) In clause 1, in new section 12A, after subsection (4) insert-
"(5) Before making regulations under this section the Secretary of State must consult the Scottish Ministers.".
(2) In clause 3-
(a) in subsection (2), in paragraph (b), for "Type C" substitute "Type DA",
"(2A) In paragraph 2, after the entry for Type D insert-
3 Disqualification from membership of the Scottish Parliament
(2) After clause 1 insert-
" 1A Disqualification from membership of the Scottish Parliament
(1) In Part 1 of Schedule 4 to the 1998 Act (enactments etc. protected from modification by the Parliament), in paragraph 4(2), for "17(5)" substitute "15 to 18".
(2) In Part 2 of Schedule 5 to the Act (reserved matters: specific reservations), in Section B3 (elections), after "local government elections." insert-
Disqualification from membership of the Parliament.".".
(2) Leave out clause 23.
Convention rights and the Lord Advocate
Removing the Lord Advocate from section 57(2)
(1) In section 57 (Community law and Convention rights)-
(a) in subsection (2), leave out from third "any" to the end and insert-
"(a) any of the Convention rights, or
(b) Community law.",
(i) for "Subsection (2)" substitute "Subsection (2)(a)",
(ii) the words from "which" to the end are repealed.
(1) The Scotland Act 1998 (c.46) is amended as follows.
(2) In section 102 (powers of courts and tribunals to vary retrospective decisions), in subsection (1)-
(a) the word "or" after paragraph (a) is repealed,
(b) after paragraph (b) add ", or
"(c) a member of the Scottish Government does not have power to do any other act that the member has purported to do.".
1 Commencement of finance provisions
(2) In clause 26-
(a) in subsection (4), after "Treasury" insert ", with the consent of the Scottish Parliament,",
(b) in subsection (5), after "Treasury" insert ", with the consent of the Scottish Parliament,",
(c) after subsection (6) insert-
"(6A) For the purposes of subsections (4) and (5)-
(b) standing orders must provide that only a member of the Scottish Government may move a motion for such a resolution.".
(3) In clause 27-
(a) in subsection (7), after "Treasury" insert ", with the consent of the Scottish Parliament,"
(b) after that subsection add-
"(8) For the purposes of subsection (7)-
(4) In clause 29-
(b) after subsection (6) add-
"(7) For the purposes of subsection (4)-
(5) In clause 31-
"(5) For the purposes of subsection (4)-
Page updated: Monday, March 14, 2011