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

That is correct, and so it should be. If the UK Government decided to rebalance the taxes in some fundamental way, of course it would be wrong to take away the expected income tax take for Scotland that itself is reflected in all the calculations of the block grant. Again, I can attempt to see whether I can put down a worked example to show how the money flows will go, but this is not intended to give Scotland some great bonanza. It is a two-way balancing mechanism to make sure that neither Scotland nor the rest of the UK is disadvantaged by the way in which the effect of personal allowance changes will flow through the system.