Thursday, February 26, 2009

Lib Dems snub Federalism

Never before has a political party been gifted an opportunity to promote one of their core policies by a sitting government, only for that party to turn up its metaphorical nose at it. That basically is the reaction of Tavish Scott's Scottish Lib Dems in response to the new Fiscal Autonomy consultation document launched under the National Conversation banner.

Finance Secretary John Swinney is offering five options for debate:

Current framework - Scottish Parliament can vary tax by 3p
Assigned Revenues - Budget determined by amount of revenue collected in Scotland. No power to alter taxes and no block grant
Enhanced devolution powers - Holyrood able to set some taxes. Limited borrowing powers
Full fiscal autonomy -
Taxes set in Scotland. Percentage of revenue paid to Westminster for defence and foreign affairs
Independence - All revenues collected in Scotland. Holyrood able to borrow and determine
monetary policy
Just as the First Minister has embraced in dialogue with the Calman Commission (which also double-crossed the Lib Dems over a Federal fiscal approach), now it's time for the Lib Dems to get off the proverbial fence and campaign for what they believe in. What is clear is Calman will never deliver what the Lib Dems want, so why bother supporting a talking shop that is going nowhere? Principle before fear.

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