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Scotland 'should set own income tax', says Smith Commission

27 November 2014 Last updated at 18:26 GMT

The Scottish Parliament should have the power to set income tax rates and bands, the body on strengthening devolution has concluded.

The Smith Commission also said a share of VAT should be assigned to the parliament, and Air Passenger Duty fully devolved.

The commission was set up by Prime Minister David Cameron in the wake of the vote against Scottish independence.

The BBC's Scotland correspondent Lorna Gordon reports.