Meeting of the Parliament 19 August 2014
I am grateful to the committee, the advisers, the clerks and the Government officials for their detailed work over a long time.
It is striking that this afternoon’s debate contrasts remarkably with the debates on the bill that we had a few months ago. It also contrasts with debates earlier this afternoon, when we were all heated. I felt the early adrenaline rush evaporate as this debate commenced.
The bill shows the effectiveness and value of devolution and the effectiveness of the Parliament. It is a direct consequence of the Scotland Act 2012. It is also a precursor to what I want to see: more powers being transferred to the Parliament here at Holyrood—perhaps only if there is a vote next month.
The bill also sets an important foundation for the expansion that I want of the Parliament’s powers on income tax, capital gains tax, inheritance tax and many other areas so that the Parliament raises the majority of the money that it spends. I also presume that, for SNP members, it sets a foundation for independence.
When the bill and revenue Scotland were first proposed, the aspiration was set out to save significant sums of money—I think that £250 million was mentioned—because we would have a much simpler, more flexible, more agile system of tax collection in comparison with Her Majesty’s Revenue and Customs. Those ambitions will be tested on the two relatively small taxes for which we will be responsible initially. Everybody will watch closely to ensure that those bold ambitions are met, even if it is in a minor way.
As Iain Gray eloquently pointed out, the 450 or so amendments that have been made to the bill have revealed that raising tax is not a simple business. The people on the other side who want to avoid tax are smart and will spend a lot of time and money trying to avoid it. Therefore, we will have to work extremely hard and be extremely agile to ensure that we are as effective as, if not more effective than, HMRC.
HMRC has made some progress in recent years. It has managed to make 40 changes in tax law since 2010 and many of the loopholes have been closed. However, it is an on-going process to ensure that those who want to avoid tax are caught and make their contribution. Ultimately, we want public services to be properly and adequately funded to ensure that we get the services that we deserve and need.
I have great hopes for the bill. It is a great piece of work. I hope that it will be as effective as those who proposed it initially claimed that it would be.
With that, I pledge my party’s support.
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