 how the Scottish Parliament works. What is the Scottish Parliament? The Scottish Parliament was established in 1999. It is made up of 129 elected representatives who are known as members of the Scottish Parliament, or MSPs. The Scotland Act 1998 gave the Scottish Parliament power to pass laws affecting Scotland on a wide range of domestic issues and to vary the basic rate of income tax by up to three pence in the pound. The Scotland Act 2012 gives the Scottish Parliament enhanced powers which will come fully into effect in 2016. Following the referendum on Scottish independence on 18 September 2014, a process is underway to transfer further powers to the Scottish Parliament. What can the Scottish Parliament decide? The Scottish Parliament has power to make laws on a range of issues that are known as devolved matters. Devolved matters include agriculture, civil and criminal justice, education, environment, health, housing, local government, planning, police and fire services, social work, sport and the arts and transport. What cannot be decided by the Scottish Parliament? Some issues concerning Scotland that have a UK or international impact remain the responsibility of the UK Parliament alone. These are known as reserved matters and include foreign affairs, defence, immigration and social security.