Scottish devolution: Halt Scotland Bill until financial rules agreed, say peers

Economic Affairs Committee warns that Scotland Bill is progressing with “undue haste''


By Emilio Casalicchio

20 Nov 2015

Progress of the Scotland Bill should be paused until some financial details are clarified, a House of Lords committee has said.

The bill, which is designed to implement the Smith recommendations for devolution following the Scottish referendum, is not yet clear enough on the rules around tax and spending powers, according to peers.

The Economic Affairs Committee said the bill was progressing with “undue haste'' and should be put on hold until the fiscal framework for devolution has been published.


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Peers also said the UK and Scotland should agree rules on borrowing, with a “maximum” Scottish debt.

A pledge in the bill that no country should be made worse off by devolution would be a "recipe for continuing conflict", the peers added.

And they argued that the Barnett Formula, used to calculate funding for devolved governments, should be replaced.

Chair of the committee Lord Hollick said: "The Scotland Bill has the potential to fundamentally change the UK and impact on us all both politically and economically. It is crucial that what is proposed is stable and sustainable.

"Parliament is being asked to pass the bill before we are told full details about the fiscal arrangements that will underpin this new era of devolution – that cannot be right.

"We are calling on the progress of the bill to be halted until the details are agreed and published.

"That would at least allow peers the opportunity that MPs were denied of scrutinising and amending this important legislation as informed participants."

The UK government said fiscal framework discussions were constructive, while the Scottish government said it would only approve the bill once it had a “fair fiscal framework agreement".

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