SCOTLAND - ALBA
Scotland's Governance:
The Current Situation
Ø Sovereignty lies with the UK Government at Westminster.
Ø Certain policy areas are devolved to the Scottish Parliament at Holyrood, such as Health, Education, Law and Order and some aspects of Transport and Economic policy.
Ø Westminster retains control over issues like Foreign Affairs, Defence, Taxation, Social Security and Pensions.
Ø The Scottish Executive is financed through a block grant from Westminster, currently totalling some £30 billion in 2006-07. This funding is calculated by means of a set formula – the Barnett Formula – based on a proportion of UK government spending.
Ø Spending decisions from within this set block of cash are a matter for the Scottish Executive.
Ø The Executive has the power to raise or lower Income Tax in Scotland by 3%, but has never utilised this power.
Independence
Ø Full legal separation from the United Kingdom.
Ø Sovereignty lies with an independent Scottish Government and legislature.
Ø This would mean the creation of a separate Scottish sovereign state, with full powers over all aspects of domestic and foreign policy, including taxation, immigration, the welfare state and defence.
Ø This would enable a Scottish Government to assume full control over all aspects of fiscal policy and to represent Scotland’s interests directly in international affairs.
Ø It would have the responsibility for raising and spending all tax revenues within Scotland.
Ø Some elements may still be shared with the UK or other foreign governments, e.g. common defence, currency, etc.

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