Orkney and Shetland MP Alistair Carmichael has welcomed news that the Scotland Bill received Royal Assent earlier this week and has now passed into law. The Scotland Act is the basis for the largest transfer of financial powers to the Scottish Parliament since the Act of Union.

Following the unanimous vote by the Scottish Parliament to support the Scotland Bill on 18 April and approval from the UK Parliament last week (26th April), the Bill received Royal Assent on 1st May.

The Act gives the Scottish Parliament multi-billion pound tax and borrowing powers and, amongst other things, the ability to set speed limits for all types of vehicles, amend drink driving limits and control air weapons from next year.

From 2016 the Scottish Parliament will also be required to set a Scottish income tax rate to replace part of the existing UK tax rate and from 2015 it will set its own stamp duty and landfill taxes.

Commenting, Mr Carmichael said:

‘While debates over further devolution and independence will continue, the Scotland Act is a big step in the right direction. The Scottish Liberal Democrats have always been a home rule party and the measures included in this bill offer Holyrood significant new powers. Since the creation of the Scottish Parliament, no First Minister has been responsible for raising the money that they spend. The Scotland Act goes some way towards addressing this anomaly.

‘Constitutional change is a process that can only work on the basis of consensus and that is what we have seen with this Act. The detail of the Scotland Bill was informed by the findings of the Calman Commission and despite the intransigent position taken by the SNP at times, the UK government has worked closely with Holyrood at every stage. This process provides a model for future transfers of power from the UK Parliament.

‘With attention now turning towards the independence referendum, I remain of the view that the question there should be a simple one of whether or not Scotland wishes to remain in the UK or be separate from it. That does not mean that the only choices are independence or the status quo. It does mean that if we decide to remain in the UK then we can have the same sort of conversation that we had in the 1990’s about what powers the Scottish government ought to have.’