MPs are demanding full ‘home rule’ for England once new powers over tax and benefits are handed to Scotland in the biggest constitutional shake-up for decades. The Tories and Lib Dems appear determined to force a Commons vote on the issue within months, leaving Labour out in the cold by opposing the move. David Cameron vowed to publish proposals on English votes for English laws before Christmas, saying yesterday the case was now ‘unanswerable’. Scroll down for video . David Cameron, pictured, said he was about to publish proposals for English votes on English laws . However, the move prompted a fierce row over whether to ban Scots from voting on income tax rates. A report by the cross-party Smith Commission, published yesterday, set out a new deal for Scotland following its rejection of independence that will see Holyrood control income tax, VAT revenues, air passenger duty and the power to introduce new benefits. The package will transform Holyrood into one of the world’s most powerful devolved parliaments. Lord Smith of Kelvin chaired the Commission set up in the wake of the independence referendum in September . But within hours, the resurgent Scottish Nationalists suggested it was not good enough and Scotland’s new First Minister Nicola Sturgeon complained of ‘continued Westminster rule’. The settlement also prompted turmoil at Westminster, with Labour split over the implications of English home rule, under which Scots MPs would be prevented from voting on measures that only apply to the rest of the UK. The party could be permanently hobbled if its 40 Scottish MPs are stripped of the right to vote on issues controlled by the Scottish Parliament such as tax, welfare, health and education. And there are doubts over whether an MP in a Scottish seat could ever again be Prime Minister or Chancellor, as they would have only a limited say over proposed legislation. Mr Cameron said he was ‘delighted’ with the Smith Commission report, adding: ‘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.’ Although the commission included a promise that MPs from across Britain can still vote on a national budget, it became clear yesterday that the Conservatives intend a ban to apply to financial matters that only apply to the rest of the UK. Scots MPs could therefore be excluded from votes on income tax rates – which could make it impossible for Labour to introduce its proposed new 50p top rate of tax even if it wins the general election. Mr Cameron’s spokesman said: ‘There is going to continue to be a UK budget. ‘Of course there are elements where you have seen devolution on financial matters, and in that respect I would say the principle of English votes for English laws applies. In terms of what is for the UK, that will remain UK-wide.’ The new powers will be fought over by Scottish First Minister Nicola Sturgeon and Jim Murphy, who is a frontrunner in the race to lead Labour in Scotland . Sir George Young said proposals accentuated a 'constitutional imbalance' between England and the UK . Mr Clegg suggested the Lib Dems also want to curb Scots MPs’ say over income tax votes. ‘We need to look at this issue of how you deal with matters which come up from time to time which only affect England and Wales,’ he said. Labour accused the other parties of betraying the promise made in the Smith Commission. Mr Miliband said: ‘I think it’s part of the integrity of the UK that it continues to be the place that Scottish MPs vote on the budget.’ Former Commons leader Sir George Young said the Smith Commission proposals ‘further accentuate the imbalance in the British constitution between England and the rest of the United Kingdom’.And Treasury committee chairman Andrew Tyrie said the English ‘must have a veto on all laws that largely or exclusively affect them’. Former Tory cabinet minister John Redwood added: ‘Once Scotland is determining her own income tax rates and bands in the Scottish Parliament, it would be quite wrong for Scottish members of this Parliament to be trying to fix those bands and rates for the English.’ Labour MP Graeme Allen called for speedy solution to prevent a surge in English nationalism. The debate raged as Alex Salmond yesterday picked up an award – and pretended to wipe away tears of pride with a hanky designed like a St George’s flag. The former Scottish first minister mopped up mock tears in London as he was named Spectator magazine’s Politician of the Year. What new powers mean for Scotland and the rest of us . In the dying days of the referendum campaign, the three main Westminster parties promised Scotland new powers in a bid to prevent a Yes vote. Yesterday, the Smith Commission published its blueprint for implementing the dramatic changes. Here, Home Affairs Editor JAMES SLACK examines what it means. The Barnett formula . Lord Barnett, pictured, developed a system where Scotland receives more than £1,600 per head in public spending than England . The system under which Scotland gets £1,623 more public expenditure per head than England – or 19 per cent more – survives. If revisions are made, Scotland must not lose out. The funding helps to pay for items such as free prescriptions, not offered in England. Income tax and VAT . Holyrood can spend 100 per cent of income tax collected in Scotland, along with the first 10 per cent of VAT. This would give it around £15billion a year for devolved matters. Scotland would be expected to try to balance its books, but it does not have to live within its means overall. Over £65billion was spent north of the border in 2012-13. Only £53billion was raised through taxes. Tax rates and bands . Holyrood cannot alter the threshold at which tax is paid – currently £10,000 – but it could raise or lower both the basic and higher rates or introduce a new tax band. In reality, the SNP is likely to reinstate the 50p tax rate for the better-off, to fund an increase in welfare spending or job creation. It could lead to high-earning Scots domiciling themselves in England. There is also the bureaucratic nightmare of how to treat people who live in Scotland but work in England, or vice versa. Borrowing Powers . Should income tax receipts drop in a recession, Scotland could borrow billions to make up the shortfall – with the permission of the Treasury. Holyrood could also borrow to fund capital investment. Ultimately, Westminster would have to step in if things went wrong. The UK Government would be left to bail out The scots . Arguably, the crucial paragraph in the Smith report. Scots get all the benefits of increased independence but very few of the risks. In another financial crash it would again be left to the UK to bail out Scottish banks. Many taxes reserved to Westminster . Including National Insurance, inheritance and capital gains tax, corporation tax, fuel and excise duty. The SNP says 70 per cent of Scottish taxes will still be set at Westminster. In other words, it is not satisfied. The idea that devolving power would end the clamour for independence and preserve the Union has already been proved a nonsense. MPs From across the UK will decide the UK Budget . With Scots fixing their own income tax levels, there will be demands for Scottish MPs sitting at Westminster not to vote on tax policy in the rest of the UK. This could leave a Labour government that needed Scottish MPs to form a majority unable to pass its own Budget – an untenable position. English votes for English laws . The issue is ignored. But there is no way Tory MPs will not demand constitutional changes to stop Scots voting on devolved matters. The State pension . The UK – not the Scottish taxpayer – remains on the hook for the most expensive welfare spending. This includes basic and additional state pensions, and most of the benefits included in the new Universal Credit. Devolved benefits . Housing benefit, Disability Living Allowance, cold weather payments and winter fuel payments are all devolved, giving Holyrood the power to axe the so-called bedroom tax. The benefit cap could be set at a higher rate for Scots than in the rest of the UK. The Smith Commission is setting out dramatic new powers for Scotland, ordered in the wake of the referendum on independence which saw Scotland vote to stay in the UK . 16 and 17-year-olds could get the vote . For Westminster elections, the age will remain 18. But Labour and the Lib Dems are committed to giving 16-year-olds the vote for UK general elections – so the genie may already be out of the bottle. Air duty devolved. Rail could be nationalised . Holyrood could axe tax on air passengers – so Scottish airports could undercut English rivals. Public sector will be able to bid for rail contracts. Scots help to agree UK’s stance in EU discussion of devolved matters . If the Tories win the election, this may be a headache for Mr Cameron in referendum negotiations with Brussels. He will have to haggle not only with other member states, but also with a pro-EU SNP Government. Consultation to take place on devolving abortion law . Abortion is legal in the first 24 weeks of pregnancy. A rule change in Scotland could see women crossing the border – in either direction – for the procedure. Some now travel here from Northern Ireland, where it is mostly illegal. Licensing of onshore gas and oil devolved . Could mean fracking goes on across rest of the UK while Scotland is largely untouched. Offshore gas and oil receipts still go to Westminster.
English MPs now want their own 'home rule' following Scottish decision .
David Cameron will publish English votes for English law proposals .
Labour is opposed to the English votes for English law plan .
The Conservatives and Lib Dems want a vote on the plan in the New Year .
MPs are demanding full ‘home rule’ for England once new powers over tax and benefits are handed to Scotland in the biggest constitutional shake-up for decades. The Tories and Lib Dems appear determined to force a Commons vote on the issue within months, leaving Labour out in the cold by opposing the move. David Cameron vowed to publish proposals on English votes for English laws before Christmas, saying yesterday the case was now ‘unanswerable’. Scroll down for video . David Cameron, pictured, said he was about to publish proposals for English votes on English laws . However, the move prompted a fierce row over whether to ban Scots from voting on income tax rates. A report by the cross-party Smith Commission, published yesterday, set out a new deal for Scotland following its rejection of independence that will see Holyrood control income tax, VAT revenues, air passenger duty and the power to introduce new benefits. The package will transform Holyrood into one of the world’s most powerful devolved parliaments. Lord Smith of Kelvin chaired the Commission set up in the wake of the independence referendum in September . But within hours, the resurgent Scottish Nationalists suggested it was not good enough and Scotland’s new First Minister Nicola Sturgeon complained of ‘continued Westminster rule’. The settlement also prompted turmoil at Westminster, with Labour split over the implications of English home rule, under which Scots MPs would be prevented from voting on measures that only apply to the rest of the UK. The party could be permanently hobbled if its 40 Scottish MPs are stripped of the right to vote on issues controlled by the Scottish Parliament such as tax, welfare, health and education. And there are doubts over whether an MP in a Scottish seat could ever again be Prime Minister or Chancellor, as they would have only a limited say over proposed legislation. Mr Cameron said he was ‘delighted’ with the Smith Commission report, adding: ‘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.’ Although the commission included a promise that MPs from across Britain can still vote on a national budget, it became clear yesterday that the Conservatives intend a ban to apply to financial matters that only apply to the rest of the UK. Scots MPs could therefore be excluded from votes on income tax rates – which could make it impossible for Labour to introduce its proposed new 50p top rate of tax even if it wins the general election. Mr Cameron’s spokesman said: ‘There is going to continue to be a UK budget. ‘Of course there are elements where you have seen devolution on financial matters, and in that respect I would say the principle of English votes for English laws applies. In terms of what is for the UK, that will remain UK-wide.’ The new powers will be fought over by Scottish First Minister Nicola Sturgeon and Jim Murphy, who is a frontrunner in the race to lead Labour in Scotland . Sir George Young said proposals accentuated a 'constitutional imbalance' between England and the UK . Mr Clegg suggested the Lib Dems also want to curb Scots MPs’ say over income tax votes. ‘We need to look at this issue of how you deal with matters which come up from time to time which only affect England and Wales,’ he said. Labour accused the other parties of betraying the promise made in the Smith Commission. Mr Miliband said: ‘I think it’s part of the integrity of the UK that it continues to be the place that Scottish MPs vote on the budget.’ Former Commons leader Sir George Young said the Smith Commission proposals ‘further accentuate the imbalance in the British constitution between England and the rest of the United Kingdom’.And Treasury committee chairman Andrew Tyrie said the English ‘must have a veto on all laws that largely or exclusively affect them’. Former Tory cabinet minister John Redwood added: ‘Once Scotland is determining her own income tax rates and bands in the Scottish Parliament, it would be quite wrong for Scottish members of this Parliament to be trying to fix those bands and rates for the English.’ Labour MP Graeme Allen called for speedy solution to prevent a surge in English nationalism. The debate raged as Alex Salmond yesterday picked up an award – and pretended to wipe away tears of pride with a hanky designed like a St George’s flag. The former Scottish first minister mopped up mock tears in London as he was named Spectator magazine’s Politician of the Year. What new powers mean for Scotland and the rest of us . In the dying days of the referendum campaign, the three main Westminster parties promised Scotland new powers in a bid to prevent a Yes vote. Yesterday, the Smith Commission published its blueprint for implementing the dramatic changes. Here, Home Affairs Editor JAMES SLACK examines what it means. The Barnett formula . Lord Barnett, pictured, developed a system where Scotland receives more than £1,600 per head in public spending than England . The system under which Scotland gets £1,623 more public expenditure per head than England – or 19 per cent more – survives. If revisions are made, Scotland must not lose out. The funding helps to pay for items such as free prescriptions, not offered in England. Income tax and VAT . Holyrood can spend 100 per cent of income tax collected in Scotland, along with the first 10 per cent of VAT. This would give it around £15billion a year for devolved matters. Scotland would be expected to try to balance its books, but it does not have to live within its means overall. Over £65billion was spent north of the border in 2012-13. Only £53billion was raised through taxes. Tax rates and bands . Holyrood cannot alter the threshold at which tax is paid – currently £10,000 – but it could raise or lower both the basic and higher rates or introduce a new tax band. In reality, the SNP is likely to reinstate the 50p tax rate for the better-off, to fund an increase in welfare spending or job creation. It could lead to high-earning Scots domiciling themselves in England. There is also the bureaucratic nightmare of how to treat people who live in Scotland but work in England, or vice versa. Borrowing Powers . Should income tax receipts drop in a recession, Scotland could borrow billions to make up the shortfall – with the permission of the Treasury. Holyrood could also borrow to fund capital investment. Ultimately, Westminster would have to step in if things went wrong. The UK Government would be left to bail out The scots . Arguably, the crucial paragraph in the Smith report. Scots get all the benefits of increased independence but very few of the risks. In another financial crash it would again be left to the UK to bail out Scottish banks. Many taxes reserved to Westminster . Including National Insurance, inheritance and capital gains tax, corporation tax, fuel and excise duty. The SNP says 70 per cent of Scottish taxes will still be set at Westminster. In other words, it is not satisfied. The idea that devolving power would end the clamour for independence and preserve the Union has already been proved a nonsense. MPs From across the UK will decide the UK Budget . With Scots fixing their own income tax levels, there will be demands for Scottish MPs sitting at Westminster not to vote on tax policy in the rest of the UK. This could leave a Labour government that needed Scottish MPs to form a majority unable to pass its own Budget – an untenable position. English votes for English laws . The issue is ignored. But there is no way Tory MPs will not demand constitutional changes to stop Scots voting on devolved matters. The State pension . The UK – not the Scottish taxpayer – remains on the hook for the most expensive welfare spending. This includes basic and additional state pensions, and most of the benefits included in the new Universal Credit. Devolved benefits . Housing benefit, Disability Living Allowance, cold weather payments and winter fuel payments are all devolved, giving Holyrood the power to axe the so-called bedroom tax. The benefit cap could be set at a higher rate for Scots than in the rest of the UK. The Smith Commission is setting out dramatic new powers for Scotland, ordered in the wake of the referendum on independence which saw Scotland vote to stay in the UK . 16 and 17-year-olds could get the vote . For Westminster elections, the age will remain 18. But Labour and the Lib Dems are committed to giving 16-year-olds the vote for UK general elections – so the genie may already be out of the bottle. Air duty devolved. Rail could be nationalised . Holyrood could axe tax on air passengers – so Scottish airports could undercut English rivals. Public sector will be able to bid for rail contracts. Scots help to agree UK’s stance in EU discussion of devolved matters . If the Tories win the election, this may be a headache for Mr Cameron in referendum negotiations with Brussels. He will have to haggle not only with other member states, but also with a pro-EU SNP Government. Consultation to take place on devolving abortion law . Abortion is legal in the first 24 weeks of pregnancy. A rule change in Scotland could see women crossing the border – in either direction – for the procedure. Some now travel here from Northern Ireland, where it is mostly illegal. Licensing of onshore gas and oil devolved . Could mean fracking goes on across rest of the UK while Scotland is largely untouched. Offshore gas and oil receipts still go to Westminster.
MPs are demanding full ‘home rule’ for England shake-up for decades. The Tories and Lib Dems appear determined to force a Commons vote on the publish proposals on English votes for English David Cameron, pictured, said he was about to income tax rates and bands in the Scottish those bands and rates for the English.’ Labour MP Scots fixing their own income tax levels, there