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Difficulty: MediumThe Scottish Government and Parliament

While the UK Parliament at Westminster retains control over 'reserved' matters, the Scottish Parliament has the authority to legislate on a wide range of 'devolved' issues. Which of the following is a specific financial power held by the Scottish Parliament?

  1. A
    The power to set national interest rates
  2. The power to vary the rate of income taxAnswer
  3. C
    The power to issue a separate Scottish currency
  4. D
    The power to set the national minimum wage

Answer

The correct answer is the power to vary the rate of income tax.
The Scottish Parliament has the authority to legislate on devolved matters, which includes the specific power to vary the rate of income tax for residents in Scotland. This power allows the Scottish Government to adjust tax revenue independently of the UK-wide income tax rates set at Westminster.

Step-by-Step Solution

1
Distinguish between devolved and reserved powers.
Develoved powers are those granted to the Scottish Parliament (e.g., health, education), while reserved powers are kept by the UK Parliament (e.g., defense, foreign affairs).
Understanding the division of authority is essential for identifying the limits of the Scottish Parliament's legislative competence.
2
Identify the specific financial power mentioned in the official handbook.
The handbook explicitly states that the Scottish Parliament has the power to vary the rate of income tax.
This is a key constitutional power that differentiates the Scottish Parliament's fiscal authority from other devolved administrations.

Key Concept

The legislative competence and financial powers of the Scottish Parliament.
Estimated Time:1m 0s
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Topics

The Scottish Government and Parliament