Is this the beginning of the end for UK? Critics fear new tax powers for Scotland are part of slippery slope
Critics fear transfer of powers including the setting of income tax could prompt demands by the other parts of Britain and lead to break-up
Britain has agreed to further dismantle its highly centralised system of government, striking a political deal to grant Scotland new tax-raising powers in a move critics fear could trigger the beginning of the end of the United Kingdom.
The deal, unveiled yesterday after an agreement between all the Scottish chapters of Britain's main political parties, will trigger the biggest transfer of powers to Scotland from the United Kingdom since 1999 when a Scots parliament was set up and will be implemented after a UK-wide election next year.
It is likely to spur demands for similar powers from England, Wales and Northern Ireland, teeing up uncertainty and heralding an eventual redistribution of power in the world's sixth-largest economy to its constituent parts.
Scotland, which already enjoys a large measure of autonomy and voted to reject full-blown independence in September, will get the power to set income tax rates, some influence over welfare spending, and powers to decide how the Scottish parliament and other structures are selected and run.
"This I think is a good day for the UK," Prime Minister David Cameron said, playing down fears from lawmakers across the political spectrum that it could weaken the UK and was the start of a slippery slope to a break-up.
Nicola Sturgeon, the leader of the pro-independence Scottish National Party (SNP), said the deal did not go far enough.
"I welcome all new powers," she said. "But 70 per cent of our taxes and 85 per cent of welfare staying at Westminster is not real home rule," she said, referring to the British parliament.