http://www.independent.co.uk/news/uk/scottish-independence/smith-commission-labour-anger-grows-at-milibands-uturn-on-ceding-powers-to-holyrood-9888619.html
Smith Commission: Labour anger grows at Miliband’s U-turn on ceding powers to Holyrood
Scottish MPs would be banned from voting on tax changes for the rest of the UK under sweeping plans to be outlined by David Cameron.
The landmark change, which could prevent a future Labour government winning Commons approval for its own budget, would mirror changes proposed today to hand control of income tax bands and rates to the Scottish Parliament. Labour fears Mr Cameron’s move would create “two classes of MP” and put the 307-year Union at risk.
There were bitter recriminations in Labour’s ranks after Ed Miliband backed proposals from a cross-party commission chaired by Lord Smith of Kelvin, which also called for some welfare policies to be devolved to the Edinburgh parliament. Its historic report was seen as a step towards a federal UK but politicians were divided over whether the reforms would save the Union or lead to its eventual break-up.
Some Labour MPs expressed fears that the party leadership, in a desperate attempt to avoid a meltdown in Scotland at next May’s general election, had signed a “suicide note” that would neuter a future Labour government.
Until now, Labour has strongly opposed Conservative and Liberal Democrat plans to cede power over income tax. But Mr Miliband made a major U-turn as it became clear that Labour could suffer a crushing defeat in Scotland next May. The Scottish National Party was bound to accuse it of breaking the promise by the three Westminster parties for more devolution if Scots voted No to independence in their September referendum.
Mr Cameron was “delighted” with the Smith Commission report, and denied it put the Union at risk: “I think the report today also makes the case for English votes for English laws unanswerable and we will be taking action on that shortly.”
The Prime Minister’s official spokesman said: “There is an important principle about English votes for English laws. His view is that it should apply to financial matters.”
A final decision will depend on who is in power after the general election, as the devolution law will not be introduced until after that.
Some senior Labour figures are worried that Mr Miliband has stored up problems for a future Labour government. One said: “The SNP has got us on the run. Cameron will exploit this.”
A Labour backbencher said: “We have not thought through the implications. This will return to haunt us.”
Alistair Darling, the former Chancellor, told the Commons that the changes must not undermine “the integrity and the strength of the UK” and the fiscal union must remain one of its central pillars.
Ed Balls, the shadow Chancellor, made clear his doubts in an interview in Parliament’s The House magazine before the Smith Commission reported. He said there must be “a UK income tax system” without weakening “the pooling and sharing of risks”, adding: “It’s no secret it’s my job to be concerned about these things."