The Courier & Advertiser (Perth and Perthshire Edition)
SNP in embarrassing U-turn over tax credit powers for Holyrood
Minister switches position during chaotic debate
SNP ministers yesterday performed an embarrassing U-turn by admitting Holyrood will have powers to restore tax credits after initially insisting it would not.
The issue was debated in the Scottish Parliament with the SNP initially insisting it had no ability to reverse cuts.
Social Justice Secretary Alex Neil had even called for such powers to be devolved in an amendment to Jackie Baillie’s debating motion.
But it emerged the Scotland Bill will allow him to implement policies to offset the changes, although the Scottish Government still refused to spell out any plan to do so.
Scottish Secretary David Mundell confirmed an amendment to the Scotland Bill means the Scottish Government will be able to top up reserved benefits and create new benefits in devolved areas.
Quizzed by Conservative MSP Murdo Fraser, Mr Neil admitted: “The amendments tabled today should give the Scottish Parliament those powers.
“But until today none of the amendments that have been tabled would have given us that power.”
He added: “We will properly address the needs of people affected by cuts in tax credits.”
Mr Neil said the SNP would not reveal its plans until they have been “properly costed” but would “establish the most effective way to administer any top-ups to tax credits”.
David Cameron had earlier insisted answers on tax credits would have to wait for three weeks, under repeated questioning from Jeremy Corbyn at Prime Minister’s Questions.
Scottish Labour gave a pledge to immediately restore tax credits in full using £250 million coming to Holyrood with the devolution of air passenger duty (APD) and income tax from highearners.
Ms Baillie embarrassing.
“We have an opportunity with new powers to do something radical.
“The SNP have spent days telling us we wouldn’t have the power to top-up tax credits, yet Alex Neil now accepts that’s just not true.”
A Conservative spokesman said: “The so-called competent SNP has been exposed today as a total shambles.”
Scottish Liberal Democrat leader Willie Rennie said: “These changes will hit 250,000 Scottish families and SNP ministers seem utterly clueless over whether they can help.”
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