New Clause 33 — Full fiscal autonomy for Scotland

Bills Presented — Local Area Referendum (Disposal of School Playing Fields) – in the House of Commons at 10:13 pm on 29 June 2015.

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Votes in this debate

  • Division number 28
    A majority of MPs voted against giving Scotland full responsibility for taxation and spending in Scotland.

‘(1) The Scottish Government and the Government of the United Kingdom must enter into an agreement (the “Economic Agreement”)—

(a) setting out a plan for implementation of full fiscal autonomy for Scotland, and

(b) establishing a framework within which the two Governments are to coordinate their economic and fiscal policies in the context of full fiscal autonomy for Scotland.

(2) Full fiscal autonomy for Scotland means that—

(a) the Scottish Parliament and Scottish Government have competence for determining revenues raised in or as regards Scotland through taxation and borrowing,

(b) the Scottish Parliament and Scottish Government have competence for determining levels of public expenditure in or as regards Scotland,

in accordance with the amendments made by this Act.

(3) The framework mentioned in subsection (1)(b) must in particular include arrangements for—

(a) facilitating fiscal coordination,

(b) overseeing economic cooperation,

(c) joint responsibilities in areas of mutual interest,

(d) safeguarding fiscal sustainability.

(4) In determining the terms of the Economic Agreement the two governments must seek to ensure—

(a) the maintenance of monetary stability throughout the United Kingdom,

(b) the maintenance and promotion of the single markets in the United Kingdom and the European Union,

(c) that they cooperate in the exercise of their respective functions relating to the administration and collection of taxes,

(d) an equitable and transparent approach to consequences, resources and rewards,

(e) that the Scottish Parliament and the Scottish Government retain the benefits of increased tax revenues delivered by successful policies pursued by them,

(f) that the Scottish Parliament and the Scottish Government have the powers necessary to manage the consequences of full fiscal autonomy for Scotland,

(g) that full fiscal autonomy for Scotland is implemented over a period of time, as the Scottish Parliament and the Scottish Government acquire capacity to carry out their additional competences.

(5) The Economic Agreement is to be entered into as soon as possible and the two governments must cooperate in good faith with a view to achieving that.(6) As soon as possible after the Economic Agreement is entered into—

(a) the Scottish Ministers must lay a copy of it before the Scottish Parliament, and

(b) the Secretary of State must lay a copy of it before both Houses of Parliament.

(7) The two governments must from time to time review the Economic Agreement and make such amendments to its terms as they may agree with a view to ensuring that it continues to meet the requirements of this section.(8) Subsection (6) applies to the Economic Agreement as amended as it applies to the Agreement as entered into.(9) The Secretary of State may, with the agreement of the Scottish Ministers, by regulations modify this section.(10) A statutory instrument containing regulations under subsection (9) may not be made unless a draft of the instrument has been laid before and approved by a resolution of each House of Parliament.”

This new clause would require the Scottish and UK governments to reach agreement on the delivery of full fiscal autonomy for Scotland.

Brought up.

Question put, That the clause be added to the Bill.

The Committee proceeded to a Division.

Photo of Natascha Engel Natascha Engel Deputy Speaker (Second Deputy Chairman of Ways and Means)

I ask the Serjeant at Arms to investigate the delay in the No Lobby.

The Committee having divided:

Ayes 58, Noes 504.

Division number 28 Scotland Bill — New Clause 33 — Full Fiscal Autonomy for Scotland

A majority of MPs voted against giving Scotland full responsibility for taxation and spending in Scotland.

Aye: 58 MPs

No: 504 MPs

Aye: A-Z by last name

Tellers

No: A-Z by last name

Tellers

Absent: 84 MPs

Absent: A-Z by last name

Question accordingly negatived.