UK, Scottish govts reach deal on more financial powers

It means the SNP will have to take more responsibility for taxes and welfare spending north of the Border.

This effectively means that billions of pounds in English income tax revenues will continue coming to Scotland after the levy is devolved in April next year.

“Borrowing powers will also be in place next year with a £3bn limit on capital borrowing and annual borrowing of up to £450m”.

No detriment was the principle contained in the Smith commission agreement that neither the United Kingdom nor Scottish governments should suffer financially from policy decisions made by the other once the new powers come into force. Scotland will also have a new reformed tax law which was also included in the major deal.

“This is a good example of the working with the Scottish Government to deliver for people in Scotland”.

John Swinney, leader of the Scottish negotiating team, won the most crucial battle.

First Minister Nicola Sturgeon wanted any agreement to reflect that Scotland’s population was growing at a slower rate than the rest of the UK.

But Ms Sturgeon announced that following a telephone conversation with Chancellor George Osborne, “there is now an agreement in place in principle that I believe we can recommend to Parliament”.

“There has always been a demand for the Scottish Parliament be able to tackle this issue, and I am pleased that we have been able to do so”.

‘I congratulate both our governments for reaching this deal today.

“In the longer term, it now throws a major challenge to the SNP”.

‘Grudge and grievance will no longer wash.

Her Labour counterpart, Kezia Dugdale, described the news as “a historic moment for Scotland and one that we should all celebrate”.

“And as she does, whatever she decides, she’ll have my full and unequivocal support”.

Supporters from the “No” Campaign react to a declaration in their favour, at the Better Together Campaign headquarters in Glasgow, Scotland September 19, 2014. The opportunities they provide are huge.

“Finally, the Scottish Parliament will have the power to protect older, disabled and vulnerable pedestrians from inconsiderate parking, which is fantastic news”.

A new era in Scottish politics is about to begin.

However, Lib Dem leader Willie Rennie was critical of both the Treasury and the SNP.

Sturgeon argued that if the government was to agree to the Treasury’s preferred approach, then over the 10 years from the end of the transitional period in 2022, Scotland’s budget would be reduced systematically – compared to the Barnett formula, which divvies up public funds between the home nations – by a cumulative total of £2.5bn. “The First Minister has still been unable to explain why she has agreed to the Treasury funding model given she has bitterly opposed it for months”.