Meeting of the Parliament 11 March 2015
I welcome the opportunity to open the debate on behalf of the Labour Party. Just this morning, the much-anticipated “Government Expenditure and Revenue Scotland” account for 2013-14 was published. The GERS report sets out how much we spend in Scotland and how much we raise in any given year. In effect, it is the balance sheet for public finances, and it is a hugely important measure of the nation’s financial health.
I will consider the numbers in a minute, but let me first set the context. As we approach the general election, the people of Scotland are being asked to make a choice between two competing visions of devolution while remaining in the United Kingdom. This is not about the past or the referendum; it is about our future.
On the one hand, Scottish Labour’s vision is of a powerhouse Parliament with more control over taxation and welfare, together with the continuation of the Barnett bonus providing stable spending for our public services, such as schools and the national health service, and the retention of the United Kingdom-wide pension system, which millions of Scots have paid into over the years and which almost 80 per cent want to remain paid on a UK basis.
On the other hand, we have the Scottish National Party’s plan for full fiscal autonomy. That means that Scotland would raise all its own taxes to cover its expenditure. When Alex Salmond was the First Minister, he supported full fiscal autonomy, and he had this to say about what it meant:
“Home rule is control of all domestic affairs and taxation. Reserved to Westminster would be foreign affairs and defence.”
Nicola Sturgeon, as the new First Minister, agreed with him. In an interview with Andrew Marr in late January, she confirmed that and said:
“I want full fiscal autonomy for the Scottish Parliament.”
There we have it: that is SNP policy and that is what it will go into the general election advocating—full fiscal autonomy within the United Kingdom. The Scottish Parliament would collect all the taxes, it would be responsible for all the spending, including on pensions and welfare, and it would make payments to the United Kingdom for reserved areas such as defence and foreign affairs. The Scottish Government would also have new borrowing powers, which it would need to make up any deficit.
The choice is therefore between Labour’s approach of guaranteeing new powers for the Parliament with the advantage of the Barnett bonus, and the SNP’s approach of full fiscal autonomy, under which we would raise all our money and would not have any share in the resources of the United Kingdom.