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Sturgeon and Cameron to negotiate costs of devolved powers Sturgeon and Cameron meet to discuss devolved powers
(about 9 hours later)
Nicola Sturgeon is to tell David Cameron that agreeing the framework for the devolution of more powers on tax and welfare to Scotland is "crucial". Nicola Sturgeon is meeting David Cameron in Downing Street to discuss the framework for devolution of more powers on tax and welfare to Scotland.
The two will hold talks on the issue later for the first time since May. The two are holding talks on the issue for the first time since May.
The Scottish first minister and SNP leader has said Scotland may be hundreds of millions of pounds a year worse off if the deal is not right.The Scottish first minister and SNP leader has said Scotland may be hundreds of millions of pounds a year worse off if the deal is not right.
But the UK prime minister has insisted the financial footing for Holyrood's new powers would be fair to Scotland.But the UK prime minister has insisted the financial footing for Holyrood's new powers would be fair to Scotland.
When they meet at Downing Street, the pair will also discuss how UK and Scottish governments can together address the threat from terrorism. At their meeting in Downing Street, the pair will also discuss how UK and Scottish governments can together address the threat from terrorism.
Mr Cameron agreed in September 2014 to hand substantial new powers to Scotland in the event of a No vote in last year's independence referendum.Mr Cameron agreed in September 2014 to hand substantial new powers to Scotland in the event of a No vote in last year's independence referendum.
After Scotland voted to remain in the UK, the Smith Commission was set up to decide the extent of the new powers and the future funding of Scotland, which has been based for decades on the Barnett formula. The Smith recommendations were embodied in the Scotland Bill, which is now being debated by the UK Parliament.After Scotland voted to remain in the UK, the Smith Commission was set up to decide the extent of the new powers and the future funding of Scotland, which has been based for decades on the Barnett formula. The Smith recommendations were embodied in the Scotland Bill, which is now being debated by the UK Parliament.
'Built to last''Built to last'
Monday's meeting follows months of negotiations between Scotland's Deputy First Minister John Swinney and Chief Secretary to the Treasury Greg Hands.Monday's meeting follows months of negotiations between Scotland's Deputy First Minister John Swinney and Chief Secretary to the Treasury Greg Hands.
Mr Cameron said: "Both the UK government and the Scottish government are committed to getting a good deal for Scotland and these discussions are continuing in good faith."Mr Cameron said: "Both the UK government and the Scottish government are committed to getting a good deal for Scotland and these discussions are continuing in good faith."
Analysis by Glenn Campbell, BBC Scotland political correspondentAnalysis by Glenn Campbell, BBC Scotland political correspondent
New tax and welfare powers for Scotland were agreed by the Smith Commission after the 'no' vote in the 2014 independence referendum.New tax and welfare powers for Scotland were agreed by the Smith Commission after the 'no' vote in the 2014 independence referendum.
The package has been translated into the Scotland Bill which is currently in the Lords and is due to become law before next year's Holyrood elections.The package has been translated into the Scotland Bill which is currently in the Lords and is due to become law before next year's Holyrood elections.
The UK and Scottish governments must first agree the financial arrangements that will underpin the new powers. The key issue is how to adjust the block grant Scotland receives from the Treasury each year to take into account the full devolution of income tax rates and bands.The UK and Scottish governments must first agree the financial arrangements that will underpin the new powers. The key issue is how to adjust the block grant Scotland receives from the Treasury each year to take into account the full devolution of income tax rates and bands.
As Scotland raises more of the cash it spends on services like the NHS, education and police - the amount it receives from the Treasury is reduced accordingly. It is relatively easy to work out what that figure should be in the first year but much harder to agree a method to calculate the adjustment for decades to come.As Scotland raises more of the cash it spends on services like the NHS, education and police - the amount it receives from the Treasury is reduced accordingly. It is relatively easy to work out what that figure should be in the first year but much harder to agree a method to calculate the adjustment for decades to come.
Other issues include the extent of Scotland's borrowing powers and how they interact with UK fiscal targets, funding set-up and administration costs especially for devolved welfare and independent scrutiny of Holyrood's new financial responsibilities.Other issues include the extent of Scotland's borrowing powers and how they interact with UK fiscal targets, funding set-up and administration costs especially for devolved welfare and independent scrutiny of Holyrood's new financial responsibilities.
Both sides say they want to reach a deal that is fair to both Scotland and the rest of the UK. Without such an agreement, SNP ministers have said they will block the Scotland Bill, by withholding Holyrood's consent for the legislation.Both sides say they want to reach a deal that is fair to both Scotland and the rest of the UK. Without such an agreement, SNP ministers have said they will block the Scotland Bill, by withholding Holyrood's consent for the legislation.
A deal was supposed to be reached by the end of the autumn. The talks are now expected to continue into the New Year.A deal was supposed to be reached by the end of the autumn. The talks are now expected to continue into the New Year.
Read more about Scotland's devolution process:Read more about Scotland's devolution process:
"What I am absolutely clear on is that we must abide by the Smith principles - that is the promise we have made to the people of Scotland."What I am absolutely clear on is that we must abide by the Smith principles - that is the promise we have made to the people of Scotland.
"This means that the fiscal framework must be fair to Scotland, fair to the rest of the UK, and built to last.""This means that the fiscal framework must be fair to Scotland, fair to the rest of the UK, and built to last."
Ms Sturgeon said it was vital that Scotland did not lose out and that the deal was fair.Ms Sturgeon said it was vital that Scotland did not lose out and that the deal was fair.
She said: "The Smith Commission was clear that the Barnett formula must continue unaltered, and that the Scottish or UK governments should be no better or worse off simply as a result of the transfer of powers - before any policy decisions are taken.She said: "The Smith Commission was clear that the Barnett formula must continue unaltered, and that the Scottish or UK governments should be no better or worse off simply as a result of the transfer of powers - before any policy decisions are taken.
"It is absolutely crucial that future Scottish governments can use the new tax and spending powers, to create a fairer society and grow the economy, without losing out."It is absolutely crucial that future Scottish governments can use the new tax and spending powers, to create a fairer society and grow the economy, without losing out.
"Today is not about agreeing a final deal but I hope we can make significant progress in agreeing that the deal must be a fair one.""Today is not about agreeing a final deal but I hope we can make significant progress in agreeing that the deal must be a fair one."
The Scottish government will announce its annual Budget on Wednesday, with the SNP vowing to defend public services from spending cuts which it claims are being imposed from Westminster.The Scottish government will announce its annual Budget on Wednesday, with the SNP vowing to defend public services from spending cuts which it claims are being imposed from Westminster.
'Clear opposition''Clear opposition'
Measures to tackle so-called Islamic State, referred to by the government as Daesh, will also be on the agenda for Monday's talks.Measures to tackle so-called Islamic State, referred to by the government as Daesh, will also be on the agenda for Monday's talks.
"We know that Daesh pose a very direct threat to our country and our way of life," said Mr Cameron."We know that Daesh pose a very direct threat to our country and our way of life," said Mr Cameron.
"That threat applies across the UK and so it is essential that the UK government and the governments of our devolved nations co-operate in the most effective way."That threat applies across the UK and so it is essential that the UK government and the governments of our devolved nations co-operate in the most effective way.
"We are looking at a number of issues, including the use of intelligence information, and we also need to ensure co-operation at a legislative level as well.""We are looking at a number of issues, including the use of intelligence information, and we also need to ensure co-operation at a legislative level as well."
Ms Sturgeon has warned Mr Cameron ahead of the Monday talks that imposing the Trade Union Bill in Scotland would be "unacceptable".Ms Sturgeon has warned Mr Cameron ahead of the Monday talks that imposing the Trade Union Bill in Scotland would be "unacceptable".
If it is passed, the Bill would introduce a threshold for strike ballots, new measures on picketing and would allow companies to hire agency staff to cover for striking staff.If it is passed, the Bill would introduce a threshold for strike ballots, new measures on picketing and would allow companies to hire agency staff to cover for striking staff.
Ms Sturgeon says she plans to set out Scotland's "clear opposition" to the reforms at the Downing Street meeting, adding that "slapping sanctions on workers" was not the way to reduce the number of days lost to strike action.Ms Sturgeon says she plans to set out Scotland's "clear opposition" to the reforms at the Downing Street meeting, adding that "slapping sanctions on workers" was not the way to reduce the number of days lost to strike action.