All Change
With a new cabinet in place, the Scottish Government was trying to get back to normal business with the announcement of the legislative programme for the coming year. In Scotland, this is announced by the First Minister, not the monarch, and was Nicola Sturgeon’s first major speech in her new role. However, the referendum aftermath continued as the Smith Commission reported on the proposed extra powers to be devolved to Scotland.
Smith Commission
The Commission has recommended that he power to set income tax bands should be devolved whilst most other taxation rates remain reserved to Westminster. The block grant to Scotland would then be revised to take account of the funding from income tax. This raises the possibility of Scots moving to England to avoid higher taxes but no such situation will arise for businesses as corporation tax will remain reserved. Despite the concerns in a submission to the commission from Bristol Airport, Airport duty will be devolved.
The Crown estate will be devolved which may have implications for wave and offshore wind companies who apply to the crown estate to use the seabed. As the government announced the introduction of a land reform bill to remove tax breaks for land owners and to introduce measures to stop landowners hindering sustainable development, it could in the future legislate over ownership of the Scottish foreshore and sea.
Areas which will remain reserved include employment legislation, pensions and much of the benefits system.
The Smith Commission was set a challenging target to deliver recommendations and know the scene shifts to Westminster to legislate under an equally challenging timescale and while this was a deal between the parties in Scotland, it is less clear that politicians in Westminster will agree all the proposals.
Legislative programme
In the Parliament the announcement of next year’s government programme dominated main business with the theme of Prosperity, fairness and participation. In her speech Nicola Sturgeon emphasised the economy while announcing the Scottish Business Pledge which encourages businesses to pay the living wage, increase employment and introduce progressive workplace policies.
On fairness, the government aims to have 50/50 gender split on boards with the new cabinet leading by example. Other measures include more funds to increase students from disadvantaged backgrounds in higher education, a carers bill, human trafficking and exploitation bill and a public health bill.
The final theme was participation which along with the Land reform bill will include an Empowering Communities Fund. After the speech the First Minister took to Facebook to discuss the programme though the main topics were the government’s position on Fracking and the risk privatisation of public services due to the transatlantic trade negotiations
Wind and Water
It was announced this week that renewable power, wind and hydro, has become the biggest source of electricity for the first time. The trend is set to continue as more wind farms come on stream and off-shore schemes are developed. Further following the collapse of Pelamis, the Government has announced plans to set-up Wave Energy Scotland to encourage collaborative working on wave technology and which, will employ some of the wave engineering experts who lost their jobs.