§ Mr. Malcolm BruceTo ask the Secretary of State for Scotland what estimate he has made of the(a) gross and (b) net annual (i) full year and (ii) first year, revenue yield from a decision to raise income tax by one penny by the Scottish Parliament; and if he will make a statement. [69237]
§ Mr. McLeish[holding answer 4 February 1999]: It is currently estimated that adding 1 p to the basic rate of income tax in Scotland in 2000–01, the first year in which the tax-varying power could be exercised, would yield £180 million gross (£175 million net of payments of income-related benefits) of additional tax revenue.
§ Mr. Malcolm BruceTo ask the Secretary of State for Scotland if it is his policy that the Scottish consolidated fund will receive the full-year revenue from any use of the Scottish Parliament tax-varying powers in the first year for which these can be used; and if he will make a statement. [69186]
§ Mr. McLeish[holding answer 4 February 1999]: Section 77 of the Scotland Act 1998 provides that if the Scottish Parliament uses the tax-varying power in any year to increase the basic rate of income tax in Scotland, the Board of the Inland Revenue will be required to pay into the Scottish Consolidated Fund an amount equal to an estimate by the Board of the proportion of income tax receipts for that year that is properly attributable to the tax-varying resolution of the Parliament.