HC Deb 13 December 1976 vol 922 cc475-6W
Mr. Sillars

asked the Lord President of the Council if he will publish a list of the taxation powers which he considered but rejected as inappropriate for the Scottish Assembly.

Mr. John Smith

The Government considered a wide range of taxes before announcing in paragraph 108 of Cmnd 6348 that the only tax power suitable for devolution was a general power to levy a surcharge on local authority taxation. Following a further review the Government decided, as announced in paragraph 16 of Cmnd 6585, not to pursue this proposal.

The Government have no objection of principle to devolving limited tax powers to supplement the Scottish Assembly's block fund, provided that any devolved tax or taxes would be fair, and economical to collect. The Government have considered in the light of these criteria all taxes paid by taxpayers in Scotland, to assess the scope for a Scottish surcharge, but no suitable instrument has yet been found.

Mr. Sillars

asked the Lord President of the Council if his proposals for devolution would allow the Scottish Assembly to set up a Borders or Galloway Development Agency similar to the Highlands and Islands Development Board.

Mr. John Smith

The Scottish Assembly will not be able to establish new bodies with economic development powers analogous to those exercised by the HIDB, but it will be able to set up bodies, in any part of Scotland, with social development functions similar to those exercised by the board in relation to matters which are to be devolved.

Mr. Sillars

asked the Lord President of the Council what aerodromes his devolution proposals will allocate to control by the Scottish Assembly.

Mr. John Smith

The Scotland and Wales Bill transfers responsibility for local authority airports, airports owned and operated by the British Airports Authority and aerodromes owned and operated by the Civil Aviation Authority. Powers relating to local authority airports will be transferred from the outset; powers relating to the remainder only after consultation with the Scottish Administration on the most suitable arrangements.