Committee (4th Day)

Part of Scotland Bill – in the House of Lords at 5:00 pm on 15th March 2012.

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Photo of Lord Sassoon Lord Sassoon The Commercial Secretary to the Treasury 5:00 pm, 15th March 2012

My Lords, it has been a fundamental principle of devolution from the start that if a decision of one Administration impacts on another, the other Administration should be compensated. We are not doing anything different from the principle under which devolution has existed from the start. Yes, the tax base is shared, so if the UK changes allowances and thresholds, it is quite right that the effect of that should not fall to the detriment of the Scottish Government. As I said, that follows the general principle that applies across devolution spending, as it has from the start.