Scottish Parliament to be handed control over income tax

The Scottish Government is set to get control over income tax and a raft of other new powers under plans agreed by the cross party Smith Commission.

Lord Smith will report the full agreement made by representatives of Labour, the Liberal Democrats, the Conservatives, the Green party and the SNP at a press conference in Edinburgh tomorrow.

But ITV News understands the announcement will include a plan to give the Scottish Parliament the power to set its’ own rates and bands of income tax.

The commission will stop short of giving Holyrood full control by keeping the personal allowance threshold (the level above which you start paying tax on your earnings) it will continue to be set by the UK parliament.

Other powers believed to have been agreed by the parties are control over Air Passenger Duty, a slice of VAT and £3 billion pounds worth of Welfare Benefits including the ability to scrap the bedroom tax.?

The Smith Commission was set up following Septembers independence referendum after a pledge by the leaders of the three Westminster parties to give Scotland more powers in the event of a No vote.