‘Progress’ on borrowing power bid

Michael Moore (left) and Alex SalmondThe talks are expected to focus on SNP calls for Holyrood to be given more ”economic teeth”
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Scottish Secretary Michael Moore is set to meet Alex Salmond to discuss SNP demands for more economic powers after last week’s Scottish election.

It will be their first face-to-face discussion since the SNP secured a majority in the Scottish Parliament.

The talks are expected to focus on SNP calls for Holyrood to be given more ”economic teeth” in the Scotland Bill currently going through Westminster.

These include greater borrowing powers and control over corporation tax.

The SNP has already urged Prime Minister David Cameron to improve plans on increasing Scotland’s financial powers, after the party’s landslide victory in the election.

The Nationalists took 69 of the 129 seats to give them the parliament’s first working majority.

In his first post-election speech on Friday, Mr Salmond said his priorities included reinforcing the powers of the Scotland Bill, which is designed to create greater financial accountability at Holyrood.

Under the Bill as it stands, the Scottish Parliament will take charge of more of the income tax raised in Scotland.

The new powers would be combined with a cut in the block grant, currently about £31bn, which Scotland receives from the UK government.

The SNP has also indicated it wants devolution of the Crown Estate.

Mr Moore, who is a Lib Dem MP, has said he intends to “engage constructively” with the new SNP government in the weeks ahead.

But earlier this week he appeared to pour cold water on SNP demands for control over corporation tax to be devolved.

He told BBC Scotland’s Newsnight programme: “If you recall, when the parties came together in the Calman Commission to consider what the appropriate powers were to devolve to Scotland to give it more economic teeth and more financial accountability, they looked hard at corporation tax and decided it wasn’t right either for Scotland or the rest of the United Kingdom.

“When we were developing the (Scotland) Bill over the course of the last year, we took the same view and, as things stand, that remains my view.”

He added: “But we have heard that the first minister wants to explore this option so when I meet him on Thursday I am sure we will be discussing that and I will be interested to hear about his plans to consult on that within Scotland.”

This article is from the BBC News website. © British Broadcasting Corporation, The BBC is not responsible for the content of external internet sites.

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