:00:09. > :00:18.Order, statement the Secretary of State for Scotland, Secretary David
:00:19. > :00:22.Mundell. Mr Speaker, with permission I would like to make a statement
:00:23. > :00:26.about the new fiscal framework for Scotland which was agreed yesterday
:00:27. > :00:30.by the United Kingdom and Scottish governments. And I begin by paying
:00:31. > :00:35.tribute to everyone who has worked so hard to arrive at this point, my
:00:36. > :00:39.right honourable friend the Chief Secretary and Deputy First Minister
:00:40. > :00:43.of Scotland, John Swinney, who have led these negotiations with skill.
:00:44. > :00:48.Lord Dunlop, whose contribution has been invaluable and the dedicated
:00:49. > :00:52.teams of officials from Her Majesty's Treasury and the Scottish
:00:53. > :00:56.Government who have worked tirelessly on behalf of their
:00:57. > :01:00.respective governments. They can be proud of what has been achieved and
:01:01. > :01:07.the servers they have given. This is an hugely systolic deal and will
:01:08. > :01:09.pave the way for the Scottish parliament to become one of the most
:01:10. > :01:15.accountable the bolt parliaments in the world. We have respected all the
:01:16. > :01:20.principles set out in the cross-party Smith agreement and
:01:21. > :01:24.delivered a deal that is fair for Scotland and therefore the whole
:01:25. > :01:29.United Kingdom. As Lord Smith himself said yesterday evening, when
:01:30. > :01:34.the Smith agreement was passed to the Prime Minister and First
:01:35. > :01:42.Minister, both gave their word they would love it into law. They have
:01:43. > :01:46.met that promise in full. -- deliver it into law. You will be more
:01:47. > :01:51.details in coming days but I would like to set out a future GL and
:01:52. > :01:55.solve the deal. The Scottish Government will retain all of the
:01:56. > :02:00.revenue from the taxes being devolved or assigned including
:02:01. > :02:07.around 12 billion of income tax and 5 billion of VAT. The block grant of
:02:08. > :02:10.the Scottish Government will be adjusted to reflect the devolution
:02:11. > :02:15.and assignment of further taxes and the devolution of further spending
:02:16. > :02:21.responsibilities. We have kept our commitment to retain the Barnett
:02:22. > :02:25.formula extending this to cover the areas of devolved welfare. We will
:02:26. > :02:31.use the governments preferred funding model. Under this model the
:02:32. > :02:34.government holds all specific breasts in relation to devolved
:02:35. > :02:42.taxes just as it does under the Barnett formula. That is fair to
:02:43. > :02:45.Scotland and fair to the rest of the United Kingdom. However, for a
:02:46. > :02:49.transitional period covering the next Scottish Parliament there is an
:02:50. > :02:53.agreement to share the Scottish Pacific risks as these are
:02:54. > :02:57.implemented. The Scottish Government will hold the economic risk while
:02:58. > :03:02.the UK Government will hold the population risks. A Scottish
:03:03. > :03:05.Government will not receive a any less than Barnett funding over the
:03:06. > :03:12.course of the spending review simply due to different collation growth
:03:13. > :03:18.and by the end of 2021 a review of the framework will be formed by an
:03:19. > :03:23.independent report so that we can end Stewart we are continuing to
:03:24. > :03:29.deliver Smith in full with the Scottish Government responsible for
:03:30. > :03:32.the full range of opportunities and risks associated with its new
:03:33. > :03:35.responsibilities. We have also agreed the Scottish Government will
:03:36. > :03:38.have additional new borrowing powers which will ensure the Scottish
:03:39. > :03:44.Government can manage its budget effectively and invest up to 3
:03:45. > :03:47.billion in infrastructure. In line with the recommendation of the Smith
:03:48. > :03:52.agreement we will provide the Scottish Government with ?200
:03:53. > :03:58.million chair to setup the new powers will control. The government
:03:59. > :04:03.has set up more powers to the Scottish people ensuring they have
:04:04. > :04:07.one of the most our full devolved parliaments in the world, and
:04:08. > :04:13.economic and national security that comes with being part of our United
:04:14. > :04:17.Kingdom. That is what we have agreed and that is what we have delivered
:04:18. > :04:20.in full. Now that we have agreed this story demolition deal the
:04:21. > :04:26.conversation must move on to how these new hours are to be used. The
:04:27. > :04:31.Scottish Government will have extensive powers on tax, welfare and
:04:32. > :04:37.spending. It will have control over income tax and be able to change the
:04:38. > :04:40.rates and thresholds. It will be able to create new benefits and of
:04:41. > :04:46.course the permanence of the Scottish Parliament is put the on
:04:47. > :04:50.any doubt. Mr Speaker, the people of Scotland voted for these new powers
:04:51. > :04:56.in the deserve to hear from the parties in Scotland how they will
:04:57. > :05:02.use them. New powers which, if used well, it can grow Scotland's economy
:05:03. > :05:06.and indeed population and bring opportunity and prosperity. Now that
:05:07. > :05:10.we've agreed this fiscal framework I hope and trust that this House and
:05:11. > :05:15.the other place will welcome it while, of course, subjecting it to
:05:16. > :05:22.full scrutiny. I commend this statement to the House. Ian Murray.
:05:23. > :05:26.Thank you Mr Speaker and I would like to thank the Secretary Of State
:05:27. > :05:29.for his statement and coming to the House yesterday to indicate he would
:05:30. > :05:36.be making this statement today. I'd also like to begin by welcoming
:05:37. > :05:40.unequivocally the news that this agreement has been made. I would
:05:41. > :05:45.like to thank both governments, the assistant to the First Minister and
:05:46. > :05:50.the Secretary Of State himself for working so hard to secure this
:05:51. > :05:54.historic deal. The people from both governments who we now do the deal
:05:55. > :06:01.work, my heartfelt thanks go out to them.
:06:02. > :06:08.As Lord Smith said, the agreement sees the recommendations of the
:06:09. > :06:14.Smith Commission delivered in full. Importantly, they have now
:06:15. > :06:22.stipulated that the balmy bar met Dutch macro Barnett formula should
:06:23. > :06:24.remain. I know the secretary of state has said details will be
:06:25. > :06:30.published by the end of the week. Can he indicate whether this house
:06:31. > :06:38.will have time to scrutinise it in detail? -- Barnett formula. What
:06:39. > :06:40.this process has highlighted is that future intergovernmental
:06:41. > :06:45.relationships must be improved to make these powers work for Scotland.
:06:46. > :06:49.Lord Smith recommendations that both governments need to work together to
:06:50. > :06:53.get a more productive, robust, that the bowl and transparent
:06:54. > :06:57.relationship and that the joint ministerial committee must be
:06:58. > :07:03.reformed as a matter of urgency, echo in this process. And can he
:07:04. > :07:09.confirmed this will be done. We all know there was a stumbling block.
:07:10. > :07:13.Under a compromise, there will be a five-year transitional period, which
:07:14. > :07:17.will cover a full term of the next Scottish parliament. Towards the
:07:18. > :07:21.end, an independent review recommendation will be published.
:07:22. > :07:26.That will form the basis of a more permanent solution. When he gave
:07:27. > :07:30.evidence, the Secretary of State suggested the period between the
:07:31. > :07:34.review being publish and the transitional period ending could be
:07:35. > :07:40.as little as just 12 weeks. If no agreement is reached, what happens
:07:41. > :07:45.then? In terms of the period itself, it is my understanding that the
:07:46. > :07:50.Scottish fiscal commission will carry out forecasts for the Scottish
:07:51. > :07:56.economy. Can he confirmed that? Under the terms, but they will be
:07:57. > :08:00.fully independent of the Scottish Government, because last week the
:08:01. > :08:04.Scottish finance committee voted against allowing for this very
:08:05. > :08:09.independence. There seems to be some confusion over the block grant
:08:10. > :08:14.adjustments during this period to 2022. The First Minister said it
:08:15. > :08:18.would be done according to the Treasury's favoured method, but to
:08:19. > :08:26.the Scottish Government's favoured outcome. Can he confirmed what it
:08:27. > :08:29.will be? Will it be the tax capacity adjusted levels deduction? I
:08:30. > :08:34.understand that was his latest offer. Further clarity is also
:08:35. > :08:41.needed on the demolition of powers. New powers will be available by
:08:42. > :08:46.2017, he said. The First Minister does not think this is realistic. Is
:08:47. > :08:53.he able to confirm that the new tax powers will be transferred by April
:08:54. > :08:57.2017? Today, the Scottish Government in surpassing the Scottish budget.
:08:58. > :09:05.Ten months from now, we want them to have full control of passenger duty,
:09:06. > :09:10.and tax. We also want to have powers over welfare, which will allow us to
:09:11. > :09:14.design a new social security system for Scotland. Onto the review, I
:09:15. > :09:20.welcome it and that it will be fully independent. I have stated that
:09:21. > :09:26.partial oversights and arbitration should be an established part of
:09:27. > :09:29.relations. Can you tell us how the review body will be chosen and
:09:30. > :09:33.confirm it will be done in the spirit of consensus with the full
:09:34. > :09:38.agreement of both governments? Kenny also tell us what extent the review
:09:39. > :09:47.will implement the decision taken on the long-term decision for Rock
:09:48. > :09:53.grant adjustment. -- can he also tell. Today marks and historic day.
:09:54. > :10:00.The creation of one of the most powerful devolved parliaments in the
:10:01. > :10:04.world. The demands have been met. Barnett protected, power was
:10:05. > :10:08.transferred, the Val delivered. Scottish politics will never be the
:10:09. > :10:19.same again, thanks to these new powers. We have entered a new and
:10:20. > :10:24.exciting era of devolution. -- the promise was delivered. My party will
:10:25. > :10:33.grab it with both hands. Thank you. I agree with most of what he said.
:10:34. > :10:38.In relation to the opportunity it presents and I think the people of
:10:39. > :10:42.Scotland, what they want, is to see us move on from discussing the
:10:43. > :10:48.process to discussing policies and the difference we can make for them
:10:49. > :10:53.with these extensive new powers. I would indicate that it is my full
:10:54. > :10:57.expectation that the agreement and associated details should be
:10:58. > :11:02.available tomorrow and I very much hope that that will afford them the
:11:03. > :11:11.maximum amount of scrutiny. It will be open to committees of this house
:11:12. > :11:18.to scrutinise the arrangements as they see fit. He makes, and for
:11:19. > :11:22.understandable reasons, reference to intergovernmental relations. I think
:11:23. > :11:28.it's important to look at what Lord Smith said, in relation to how this
:11:29. > :11:32.agreement was arrived at. He said, "It is difficult to imagine a bigger
:11:33. > :11:40.test. Whilst it was obvious they are very tough negotiations, what
:11:41. > :11:49.matters is an agreement has been reached". I accept that the leave. I
:11:50. > :11:58.believe that when the transition period is over, when the independent
:11:59. > :12:05.report has come forward, it will be possible to reach an agreement. And
:12:06. > :12:08.he has asked many times why it has taken so long. Many important
:12:09. > :12:15.agreements are reached at the 11th hour just by the very nature of
:12:16. > :12:20.doing a deal. I am sure that we will be able, on the basis that were set
:12:21. > :12:27.out to ensure that this is the case at the end of the transitional
:12:28. > :12:33.period. The independent review, which he refers to, will indeed be a
:12:34. > :12:38.matter of agreement between the two governments. As he is aware, there
:12:39. > :12:42.are many people in Scotland who perhaps ruled themselves out being
:12:43. > :12:46.independence, who aren't as independent as they seem. I think it
:12:47. > :12:50.is important that there is agreement between the two governments as to
:12:51. > :12:59.how that independent review should go forward. And then ultimately, in
:13:00. > :13:03.relation to the fiscal commission, yes, the agreement with the Scottish
:13:04. > :13:08.Government is that its forecast will be fully independent. And finally,
:13:09. > :13:12.this government will place no impediment in relation to the
:13:13. > :13:19.transfer of powers. So obviously we cannot impose the tax powers on the
:13:20. > :13:24.Scottish Government, we wouldn't seek to do so. But I would have
:13:25. > :13:32.hoped that they want to take them on as soon as possible and that is the
:13:33. > :13:36.end to which we will be working. May I congratulate the Right Honourable
:13:37. > :13:43.friend on his apparent success in achieving a settlement. Can he
:13:44. > :13:48.assure the house that this settlement, when it is implemented,
:13:49. > :13:52.not only gives a strong Scottish Government the power that needs to
:13:53. > :13:58.conduct its devolved affairs properly, but also it does nothing
:13:59. > :14:01.whatever to impair the ability of the United Kingdom governments to
:14:02. > :14:08.maintain financial discipline and healthy public finances for the
:14:09. > :14:11.British economy in future, because surely it's an essential condition
:14:12. > :14:20.for the future of growth and prosperity of the English, British,
:14:21. > :14:24.Welsh, Irish, United Kingdom economy? I am very happy to give my
:14:25. > :14:30.right honourable friend the assurance he seeks. The Scottish
:14:31. > :14:41.fiscal framework will be consistent with the UK fiscal framework. I will
:14:42. > :14:45.thank the Secretary of State for his statement and the conversations he
:14:46. > :14:54.had yesterday given the constraints of Parliamentary time and only being
:14:55. > :14:57.able to make a statement. I speak in behalf of all SNP members on
:14:58. > :15:02.welcoming the news fiscal framework. We all look forward to the draft
:15:03. > :15:07.heads of agreement being published for Parliamentary scrutiny. My
:15:08. > :15:12.colleagues and the Scottish Government were clear throughout
:15:13. > :15:15.these negotiations. They said they would not sign a deal which would
:15:16. > :15:25.include a threat to the Scottish budget. They promise of no detriment
:15:26. > :15:34.was made and it is a promised that the SNP has made sure was delivered.
:15:35. > :15:40.When they first began, negotiations, Scotland's budget faced a cut of ?7
:15:41. > :15:45.million. This week, it was 3 million. Yesterday, it was ?2.5
:15:46. > :15:50.million. Last night, they got a deal that ensures we will not be a pound
:15:51. > :15:59.or even a penny worse off. New powers were promised and will be
:16:00. > :16:03.delivered. I pay tribute to Nicola Sturgeon and John Swinney for
:16:04. > :16:06.standing up for Scotland and being stronger for Scotland. I welcome
:16:07. > :16:13.that the UK Government will guarantee that the outcome of the
:16:14. > :16:17.funding model is delivered in each of the next six years. I understand
:16:18. > :16:21.that a transitional funding arrangement will be reviewed
:16:22. > :16:27.following the UK and Scottish Parliamentary elections in 2020 and
:16:28. > :16:32.2021 respectively. The review will be informed by an independent
:16:33. > :16:36.report, the recommendations presented to both governments by the
:16:37. > :16:41.end of 2021. Let me say this. The Smith report was crystal clear that
:16:42. > :16:45.the fiscal framework had to be agreed by both the UK and the
:16:46. > :16:49.Scottish governments. The Treasury tried to engineer an agreement that
:16:50. > :16:52.would have allowed them to impose a model of indexation in five years'
:16:53. > :16:58.time. Those are the facts of the matter. That would have seen
:16:59. > :17:01.billions cut to the Scotland budget. May I ask the following questions.
:17:02. > :17:08.Will he confirm that the Treasury no longer has the power to impose a
:17:09. > :17:12.method of indexation? Will he confirm that the review will go
:17:13. > :17:18.ahead without prejudice to the outcome? Will he confirm there is no
:17:19. > :17:21.default indexation option? And that the Scottish Government's agreement
:17:22. > :17:33.is required before any new indexation model can be adopted? I
:17:34. > :17:40.thank the honourable gentleman for the parts he welcomed in relation to
:17:41. > :17:45.the agreement. This has been a negotiation and it is a point that
:17:46. > :17:48.has been arrived at. It's not possible for the Treasury or UK
:17:49. > :17:52.Government to have engineered an agreement. What was needed was the
:17:53. > :17:59.agreement of the Scottish Government. That has that has what
:18:00. > :18:05.has been achieved. They have been able to agree on framework that is
:18:06. > :18:14.fair to Scotland and fair to the people of Scotland. I can reassure
:18:15. > :18:18.him that the review will go ahead on an independent basis. Without
:18:19. > :18:28.prejudice or predetermined outcome and it will be concluded by the end
:18:29. > :18:36.of 2020. There will be no imposition of any formula at the end of that
:18:37. > :18:41.period and what happens there will be by way of agreement. As I said,
:18:42. > :18:48.greeting Lord Smith, I believe this process, in some of the most
:18:49. > :18:51.difficult types of negotiation, gives us constants that UK
:18:52. > :18:57.Government and Scottish Government will be able to reach an agreement.
:18:58. > :19:02.Extrapolating recent population trends, what is the additional cost
:19:03. > :19:07.to England and Wales and Northern Ireland of the transitional
:19:08. > :19:15.arrangements on population? There will be no additional cost to
:19:16. > :19:19.England and Wales and Northern Ireland in relation to the powers
:19:20. > :19:28.being transferred. If we were not proceeding with this devolution
:19:29. > :19:32.settlement. Because some is being delivered to the Scottish Government
:19:33. > :19:39.is the same as would be delivered under the Barnett formula -- the
:19:40. > :19:48.amount. The Scottish Government has pledged to halve passenger duty. It
:19:49. > :19:52.leaves Newcastle Airport at risk. Following the statement, when can we
:19:53. > :19:59.expect a decision from the government on support for regional
:20:00. > :20:07.airports, as promised by the Prime Minister, as ongoing uncertainty is
:20:08. > :20:11.very damaging. I note for the honourable lady says. People in
:20:12. > :20:17.Scotland will note that the SNP position used to be to abolish
:20:18. > :20:22.passenger duty completely. So they're somewhat of a change there.
:20:23. > :20:28.But she makes an important point. There is a review and I'm sure these
:20:29. > :20:37.issues will be issues that are considered as the budget process
:20:38. > :20:42.goes ahead. It's not the measure of giving to others what you demand
:20:43. > :20:47.yourself. Why should the Scottish people feel any different? Doesn't
:20:48. > :20:51.the Secretary of State realised there must be some merit in the
:20:52. > :20:57.argument that as long as we maintain the outmoded, outdated and unfair
:20:58. > :21:03.Barnett formula, which is disadvantage for the English, we
:21:04. > :21:13.will stoke unhappiness on both sides of the border.
:21:14. > :21:21.My honourable friend as we well know is staunch in this chamber. When he
:21:22. > :21:27.moved his amendment for complete fiscal freedom my response to that
:21:28. > :21:31.is that I think the people of Scotland would not respond well to
:21:32. > :21:41.having a ?10 billion annual Black hole in their finances and that fool
:21:42. > :21:45.fiscal freedom is not the answer. Further freedom assets set out
:21:46. > :21:48.within the Scottish bill to create a power Parliament is what the people
:21:49. > :21:58.want and what this government is delivering. Washer. Can I
:21:59. > :22:02.congratulate all involved for the principle of no detriment. Can I
:22:03. > :22:09.also thank the chief Secretary for attending and the Deputy First
:22:10. > :22:13.Minister and hope they come again to explain more about the details of
:22:14. > :22:17.this fiscal framework. Can I just ask the Secretary Of State, at the
:22:18. > :22:21.beginning of the process we have heard this figure 7000000000 pounds,
:22:22. > :22:26.Devon billion the Treasury intended to cut from the Scottish budget, why
:22:27. > :22:30.was it the Treasury 's intention to cut billions of pounds from the
:22:31. > :22:37.Scottish budget and what did he, as the Scottish Secretary for Scotland,
:22:38. > :22:40.a ten to do about it? Mr Speaker Rhino the honourable gentleman does
:22:41. > :22:48.not understand the concept of negotiation where to sides work
:22:49. > :22:51.together to get an agreement. Assertions and sound bites sound
:22:52. > :22:55.good but they do not deliver for the people of Scotland. What delivers is
:22:56. > :23:02.to produce a sustainable agreement. to produce a sustainable agreement.
:23:03. > :23:04.That is what we've done, we got an agreement that underpins the
:23:05. > :23:11.Scotland Bill which means Scotland can get these powers over tax and
:23:12. > :23:16.welfare. People want to move on from the process debate, they want to
:23:17. > :23:26.view the holiday ideas. Maggie Throup. The enquiry into the fiscal
:23:27. > :23:31.framework shows into the new welfare powers devolved to Scotland, has my
:23:32. > :23:34.right honourable friend find any details from the Scottish Government
:23:35. > :23:40.on how the plan to use the new powers? I very much welcome the fact
:23:41. > :23:46.the First Minister and Deputy First Minister have indicated they do land
:23:47. > :23:50.to set out how they intend to use the powers. I think it was very
:23:51. > :23:55.interesting some of the media reports in Scotland in particular
:23:56. > :24:01.that indicate the SMP land to significantly increase the tax
:24:02. > :24:06.burden on those middle-income earners in Scotland but obviously we
:24:07. > :24:14.will have two weight. The detail in the manifesto what will be the cases
:24:15. > :24:16.there will be no excuses now, Mr Speaker, the honourable members
:24:17. > :24:19.opposite can come here to this Parliament and complain about
:24:20. > :24:22.certain welfare changes that they will have the ability within
:24:23. > :24:28.Scotland to set their own welfare arrangements. The Scottish
:24:29. > :24:34.Government have been able to achieve their chosen deduction method
:24:35. > :24:38.through to a skilled strategy what advice will he get to the Welsh
:24:39. > :24:48.government when it comes to negotiating the fiscal framework for
:24:49. > :24:52.Wales? What I am Cleon is that the position in Wales will be as in
:24:53. > :24:57.Scotland, the people of Wales will benefit most when the Welsh
:24:58. > :25:07.government and the United Kingdom government work constructively
:25:08. > :25:09.together for their benefit. Isn't it time, Mr Speaker, that we heard from
:25:10. > :25:14.the Scottish Government detailed plans to devolved our down to the
:25:15. > :25:24.Scottish communities? Revolution should not stop at Holyrood. I
:25:25. > :25:31.absolutely agree with my honourable friend and I am sure he will have
:25:32. > :25:35.read my speech of the 21st of November delivered in Glasgow city
:25:36. > :25:41.Chambers, making exactly the case for devolution within Scotland.
:25:42. > :25:47.Unfortunately, in recent times, Scotland has become one of the most
:25:48. > :25:51.centralised countries in terms of government. I believe the news that
:25:52. > :25:56.if government elected in May should be devolving further powers and the
:25:57. > :26:03.best way to achieve that is to elect more Scottish Conservative MPs under
:26:04. > :26:07.the leadership of Ruth Davidson. Thank you, how great to follow that
:26:08. > :26:14.remark from the Secretary Of State. How does the cost can be a to the
:26:15. > :26:21.government current calculations for implementing a deal agreed at last
:26:22. > :26:29.weeks EU summit for foreign workers in the UK? I welcome the question,
:26:30. > :26:35.it she and I were both Scottish candidates bodies cottage Parliament
:26:36. > :26:50.in the dim and distant past. I am sure the details I am sure the
:26:51. > :26:54.details will stand up to scrutiny. It is an unedifying spectacle when
:26:55. > :26:59.large numbers are quite so visit this. He's even graces that all of
:27:00. > :27:07.them do have a very notable smile on their faces so at least there is
:27:08. > :27:14.humour in the chamber. Mr Alan mac you wish to give us the benefit of
:27:15. > :27:22.your views? This new agreement does show that Scotland's government can
:27:23. > :27:26.work together and the details of how the world use these new powers? I
:27:27. > :27:32.certainly do and I do since yearly hand have on a number of occasions
:27:33. > :27:38.in this chamber, paid particular tribute to the Deputy First Minister
:27:39. > :27:40.of Scotland, John Swinney. He and I have had numerous conversations like
:27:41. > :27:46.this process and twilight times we have been in disagreement, they have
:27:47. > :27:49.always been cordial and civil and that is the basis of the
:27:50. > :27:54.relationship I want to see with the Scottish Government. I think the
:27:55. > :27:57.honourable gentleman is right and what this agreement means is that
:27:58. > :28:01.the Scottish bill can pass through the House and hopefully received
:28:02. > :28:06.consent motion at Holyrood and what that will mean is the will be no
:28:07. > :28:10.hiding place on these issues bodies cottage government. If they want to
:28:11. > :28:14.spend more they will have the tax powers to do so and if they want to
:28:15. > :28:22.have higher welfare they will have the ability to do so. My
:28:23. > :28:25.constituents will welcome this agreement and the fact the Scottish
:28:26. > :28:29.Government was able to persuade the Treasury to abandon its initial
:28:30. > :28:34.position which would have meant seven pounds -- ?7 billion of cuts
:28:35. > :28:39.in the Scottish finance and come to the Smith position that there should
:28:40. > :28:45.be no detriment. At this been the original possession of the secretary
:28:46. > :28:49.we could have got this done before Christmas rather than spend so much
:28:50. > :28:54.time with that. Is now the case beyond doubt that principle of no
:28:55. > :29:05.detriment to the Scottish budget is enshrined both now and in the
:29:06. > :29:11.future? Yes, as is the other point in the Smith commission, it is not
:29:12. > :29:15.just in Scotland but across the UK. I was very clear that Barnett would
:29:16. > :29:20.be retained, that has been done and it is right it has been done. The
:29:21. > :29:26.starting point for public spending in Scotland now is 115% of the UK
:29:27. > :29:29.average. Can the Secretary Of State tell the House in terms of his
:29:30. > :29:35.modelling what that percentage per capita will be at the end of this
:29:36. > :29:39.Parliament? Certainly, since the honourable gentleman asked for
:29:40. > :29:45.complex calculation, I will be happy to write to him in that regard. What
:29:46. > :29:50.I would say and I do respect his strongly held views an allusion to
:29:51. > :29:55.the Barnett formula, the government division is clear, the Barnett
:29:56. > :30:00.formula is being retained. Following yesterday's devastating votes on the
:30:01. > :30:06.Lord amendments for the Welfare Reform Bill, and the Secretary Of
:30:07. > :30:10.State say more on cams of when powers will be transferred to
:30:11. > :30:14.Scotland so that at least in Scotland we can do something to
:30:15. > :30:22.prevent the appalling effects of poverty on children and disabled
:30:23. > :30:27.people? Obviously I do not agree with her perspective in relation to
:30:28. > :30:30.specific policies but she is right the Scottish parliament will have
:30:31. > :30:34.specific and detailed policies in relation to welfare. We have a joint
:30:35. > :30:39.ministerial group on welfare which includes myself and Scottish
:30:40. > :30:42.ministers Alex Neil and Roseanna Cunningham and what we need to do is
:30:43. > :30:48.work through that group in terms of the transfer of specific powers.
:30:49. > :30:51.What we do not want to do is order to be a transfer of power without
:30:52. > :30:58.new arrangements being in place cause obviously goes able in receipt
:30:59. > :31:02.of the benefits have to be our prime concern. We are going to work
:31:03. > :31:07.closely together. An enormous amount of work has been done by officials
:31:08. > :31:11.to date and I am confident once we know the cause we do not fully now,
:31:12. > :31:16.of course, what the Scottish Government proposal la, once we know
:31:17. > :31:24.what the RB will be able to make an effective transition. The Secretary
:31:25. > :31:28.Of State in his reply to my honourable friend the member for
:31:29. > :31:34.Perth and North they are sure seemed to confirm that the Treasury is
:31:35. > :31:40.opening bed in these negotiations, a so-called level deductions approach
:31:41. > :31:46.which would have led to a ?7 billion debt in Scottish spending, the
:31:47. > :31:51.opening bed was merely a negotiating ploy. If that is the case will be
:31:52. > :31:54.Secretary Of State confirm that it was disrespectful for negotiations
:31:55. > :32:01.to start with the position so far from the doubt and will he confirm
:32:02. > :32:08.that will ever happen again? Mr Speaker, what complete and utter
:32:09. > :32:13.nonsense! A deal is done that is good for Scotland, good for the UK
:32:14. > :32:15.and honourable members opposite had to trawl through newspaper reports
:32:16. > :32:23.to find something that they can complain about! This is a good deal
:32:24. > :32:26.for Scotland, it gets Scotland new powers, like stock about how we use
:32:27. > :32:35.those powers or the benefit of Scotland and let the grievance
:32:36. > :32:40.agenda to bed once and for all! I have no desire to sour the tone of
:32:41. > :32:44.consensus on what is and the story date for Scotland. It is a fact and
:32:45. > :32:50.many of my constituents leave that funding for Scotland and parts of
:32:51. > :32:53.the Barnett formula art and fear to the north of England. That is the
:32:54. > :32:59.acknowledged that grievance and how does this new fiscal framework James
:33:00. > :33:03.that? I acknowledge that people have those feelings and a number of
:33:04. > :33:09.people on both sides of this House have raised issues about the Barnett
:33:10. > :33:13.formula. In my view that is their job as representatives of different
:33:14. > :33:16.parts of the United Kingdom. My position is quite clear, the Barnett
:33:17. > :33:24.formula is good for Scotland and this over at is keeping the Barnett
:33:25. > :33:27.formula. And the Secretary Of State name some of the devolved assemblies
:33:28. > :33:33.around the world that will now be less powerful than the Scottish
:33:34. > :33:37.Parliament? I can produce them a list and I will send him that lest
:33:38. > :33:42.because I am not focused on other assemblies around the world. I am
:33:43. > :33:46.focused on the Scottish parliament and making it a powerhouse
:33:47. > :33:53.parliament with the powers that make a difference in Scotland. That is
:33:54. > :33:58.what the state of the debate is. I think his constituents want want to
:33:59. > :34:03.hear about parliaments in South America and other parts of the
:34:04. > :34:09.world, they'll want to hear about what his party intends to do on
:34:10. > :34:20.income tax and wealthier. -- welfare. We have had a particularly
:34:21. > :34:24.mild November, December and January, two G, going forward, let us know
:34:25. > :34:30.when he expects this will to finish its passage in the House of Lords,
:34:31. > :34:36.when he expects it go back to the House of Commons and when he expects
:34:37. > :34:40.it to get consent? In relation to the first two questions I expect
:34:41. > :34:46.that to be Marge and I hope Royal assent will be achievable within
:34:47. > :34:50.March but it may be April but I am also respectful of the Scottish
:34:51. > :34:58.Parliament process and the need for a legislative consent motion. I
:34:59. > :35:03.thank the Secretary Of State for advanced sight of his statement. I
:35:04. > :35:05.note the Secretary makes mention of the UK Government holding population
:35:06. > :35:11.risks. Will he concedes that the limited powers available to the
:35:12. > :35:15.Scottish Government do not allow for population growth and will he now
:35:16. > :35:24.listen to calls for a cottage posts by the work scheme? In relation to
:35:25. > :35:28.the latter I have had the pleasure to appear before the Scottish
:35:29. > :35:33.appears select committee and be grilled on the issue of student work
:35:34. > :35:38.visas. I made very clear that I would look closely at the work the
:35:39. > :35:45.committee has produced and I repeat that undertaking. What I do not do
:35:46. > :35:48.is I do not accept the premise of her question. I believe that
:35:49. > :35:52.properly used the tax and other powers that the Scottish Government
:35:53. > :35:56.have will allow it to grow the Scottish economy, create jobs and
:35:57. > :36:07.grow the population of Scotland. He talks a lot negotiations, but
:36:08. > :36:15.this is a point. When they first considered making cuts, could be
:36:16. > :36:20.Secretary of State, the man in the Cabinet, see what measures he made
:36:21. > :36:24.to protect Scotland? I have been closely involved in these
:36:25. > :36:32.discussions throughout. But they are negotiations. They are not about the
:36:33. > :36:37.Treasury imposing. As Smith himself recognises, they are about the two
:36:38. > :36:41.governments coming together in a difficult circumstance to negotiate
:36:42. > :36:46.about money, which is often the most contentious thing that is the
:36:47. > :36:49.subject of negotiations. What we have demonstrated is that both
:36:50. > :37:01.reach a deal which is good for both. reach a deal which is good for both.
:37:02. > :37:05.Thank you. He has just confirmed that the initial proposal put
:37:06. > :37:11.forward by the Treasury of a ?7 billion cut to Scotland's budget was
:37:12. > :37:16.not an opening negotiation position, but a serious proposal. In the light
:37:17. > :37:25.of that, I would like to ask, does he consider himself Scotland's man
:37:26. > :37:33.in the Cabinet or the Cabinet's man in Scotland? What complete and utter
:37:34. > :37:39.nonsense. This is an investigation. It was conducted by John Swinney. He
:37:40. > :37:43.adopted a completely different tone. Civil and cordial throughout. I
:37:44. > :37:48.respect his objective of getting the best deal for Scotland. That is my
:37:49. > :37:53.objective, too, but we have to get an agreement. And we got one. It is
:37:54. > :37:58.a good one. It is an opportunity to move away from the grievance agenda.
:37:59. > :38:01.I am afraid this afternoon's proceedings leave me in doubt that
:38:02. > :38:11.even with these extensive new powers, the S NP will be able to
:38:12. > :38:16.leave that grievance agenda behind. He has repeatedly criticised the
:38:17. > :38:21.party for failing to set out how they will use the new powers. But
:38:22. > :38:24.barely an hour ago, the Prime Minister floundered badly when asked
:38:25. > :38:30.whether the Scottish Conservatives would reduce the tax rate on high
:38:31. > :38:36.earners. I'm sure he would like to avoid suggestions of hypocrisy and
:38:37. > :38:40.extend his criticism to his boss. I have nothing but admiration for Ruth
:38:41. > :38:45.Davidson. She's the one person in the Scottish Parliament that can
:38:46. > :38:49.stand up to the SNP and hold them at her account. And if people don't
:38:50. > :38:56.want a 1-party state in Scotland, the way to achieve that is by voting
:38:57. > :39:01.Scottish Conservative. The Prime Minister didn't flounder. He told
:39:02. > :39:05.you the position. Ruth will set out what the tax proposals are and they
:39:06. > :39:09.certainly won't be the same as the SNP's proposals revealed in the