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Prime minister ponders over more power for Scotland

17/02/2008

Prime minister Gordon Brown has hinted that further powers could be devolved to Scotland with regards to raising finances.

In an interview with the BBC Scotland's The Politics Show, Mr Brown answered questions about progress in the devolution of powers since the Scotland Act of 1998, which provided for the establishment of a parliament for the region as well as constitutional changes.

Mr Brown also expressed support for Scottish Labour leader Wendy Alexander, who is at the centre of a donation scandal, saying that she was "doing a very good job in difficult circumstances".

Speaking about the devolution proposals outlined by Ms Alexander, the prime minister said executive bodies needed to be responsible for raising their own funding.

He explained: "There is an issue about the financial responsibility of an executive or an administration that has £30bn to spend but doesn't have any responsibility for raising [that].

"In any other devolved administration in the world, there is usually a financial responsibility that requires not only the spending of money by the administration but also its responsibility to take seriously how it raises money."

He cited the example of local governments collecting council taxes to fund their operations as an example of such a requirement.

The prime minister continued: "Now the question is, just as local government has to raise some of its money through council tax, just as many other areas in the world where there are devolved administrations have to raise money through assigned taxation, is there a case for doing so?"