Scotland could be handed powers over income tax and a share of VAT, under a swathe of devolution proposals for Holyrood.
The historic plans published this morning would see the Scottish Parliament given the power to set tax rates and bands on earned income, with raised levies being entirely retained within the country.
The Smith Commission, who delivered the report, was tasked with establishing ‘devo-max’ details following the Scottish independence referendum earlier this year.
Head of the Commission, Lord Smith of Kelvin, said the cross-party recommendations would deliver a ‘stronger Parliament, a more accountable Parliament and a more autonomous Parliament’.
Further proposals push for a share of VAT to be assigned to the Scottish Parliament alongside the full devolvement of Air Passenger Duty.
Prime minister David Cameron said he was ‘delighted’ with the report, while deputy prime minister Nick Clegg told his LBC radio show the plans were ‘remarkable’.
The Smith Commission also called for Scotland to be given powers to allow 16 and 17 year olds to cast votes in elections, alongside the clout to create new benefits in devolved areas.
Lord Smith said: ‘The recommendations, agreed between the Parties, will result in the biggest transfer of powers to the Parliament since its establishment.’
