Scottish Parliament could raise £5bn taxes

In the first official assessment of Scotland's potential economic powers, the OBR said the total could rise to around £6.4bn by the tax year 2016-17. Under the terms of the new Bill, which is due to receive Royal Assent this spring, Scots would see their income tax reduced by 10p in the pound. Edinburgh would then levy a new Scottish income tax. The OBR reckons this would equate to £4.4bn during 2012-13 and £5.6bn in 2016-17. Edinburgh will also be handed full control of Scottish stamp duty land tax, which the OBR said could raise £328m next year, rising to £536m in 2016-17; a landfill tax, which could raise £123m, rising to £157m; and an aggregates levy which could raise £43m, rising to £51m. The tax take across all the levies are forecasts to rise over the next few years, reflecting the view taxes will increase with the economic recovery. The Scotland Bill, which has been described by the Government as the biggest transfer of fiscal powers from Westminster to Edinburgh in the Union's 300-year history, also plans for Edinburgh to issue its own bonds.