The Scottish Parliament is set for major new transport powers that could see rail services placed back in public hands north of the border under proposals published by Westminster today.
With its clauses contained in a Westminster Command Paper, the proposed draft Scotland Bill would give Scottish ministers the power to allow public sector operators to become franchisees as well as give Holyrood control over speed limits and road traffic signs.
Under the proposals, the Scottish Government could hand rail services to public bodies when it is the ‘appropriate franchising authority’ and ‘appropriate designating authority’.
Westminster also plans to transfer all powers in respect of traffic signs, pedestrian crossings and speed limits - except the ability to set exemptions to the limits in certain circumstances.
Holyrood will also have the general power to prescribe traffic signs and pedestrian crossings and to direct their placing and removal.
The reforms will not be enacted until after the UK election in May and are based on the recommendations of the Government’s Smith Commission in November last year.
Increased tax powers will also hand Scotland more control over its infrastructure investment, with Holyrood in line for control of setting new rates and bands of income tax above the UK personal allowance, as well as control over Air Passenger Duty (APD) and the Aggregates Levy.
The Scottish Parliament will be given the power to charge a tax on air passengers departing from Scottish airports, under the proposals.
Also Scotland would be handed the power to turn off the Aggregates Levy - a tax on the commercial exploitation in the UK of rock, sand and gravel, key materials in highways maintenance and construction.
The Scottish Parliament would have the power to charge tax on the commercial exploitation of aggregate in Scotland and ‘to make its own arrangements with regard to the design and collection of any replacement tax on the commercial exploitation of aggregate in Scotland’.
These changes will take place once the current legal issues in relation to the Aggregates Levy are resolved – these arise from legal challenges dating back to 2002 – and could see reforms to the UK scheme to prevent double taxation.
The move could also help Scotland benefit from the large-scale roads investment plans in England over the next parliament.
The Conservatives, Labour and the Liberal Democrats have all pledged to ensure the Scotland Bill becomes law regardless of the General Election result.
The paper also proposes handing the Scottish Parliament the power to legislate in relation to the policing of railways in Scotland. The Command Paper states: ‘Further consideration will need to be given to the manner in which executive competence will be transferred and to related organisational and operational aspects of the policing of the railways in Scotland.’
In response, Cllr David Sparks, chair of the Local Government Association which represents councils in England and Wales said: 'What’s good enough for the Scottish Government should be good enough for England’s cities and shires too. On behalf of councils across the country, the LGA is calling for an urgent Constitutional Convention on the future of devolution in England, to debate and agree a fair devolution settlement across the UK. Without it millions in England risk becoming second-class citizens.'
