Mundell to set 2017 as deadline for new tax powers

New income tax powers for the Scottish Parliament should be in place in 2017, according to Scottish secretary David Mundell.

Mr Mundell said the UK Government would like to see the new powers, contained in the Scotland Bill, come into force “as soon as possible”.

The Scotland Bill, which is before the UK Parliament, was brought forward to implement the recommendations of the post-referendum Smith Commission and gives Holyrood 10 per cent of VAT revenues, increased power over welfare spending and control over income tax rates.

The Scottish and UK governments are in discussions over the terms of a fiscal framework.

Mr Mundell will tell the Conservative Party conference in Manchester that the UK Government is keen to see Holyrood’s new income tax powers commence in 2017 – earlier than had been expected.

Mr Mundell will say: “So when people in Scotland go to the polls next year, the parties will need to present their plans for income tax. And they’ll need to be honest about what they will mean for Scottish taxpayers.”

The Scottish Government has said it would not support a deal that risks leaving Scotland “worse off”.