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Fiscal framework: No agreement reached after latest crunch talks | Fiscal framework: No agreement reached after latest crunch talks |
(about 3 hours later) | |
Crunch talks aimed at ending a dispute over the financial arrangements to accompany the Scotland Bill have broken up without agreement. | Crunch talks aimed at ending a dispute over the financial arrangements to accompany the Scotland Bill have broken up without agreement. |
Deputy First Minister John Swinney and UK Treasury minister Greg Hands met in Edinburgh. | Deputy First Minister John Swinney and UK Treasury minister Greg Hands met in Edinburgh. |
The row concerns how much should be cut from the block grant once Scotland gains new tax powers. | The row concerns how much should be cut from the block grant once Scotland gains new tax powers. |
Both the Scottish government and the UK Treasury said they would continue to seek a solution. | Both the Scottish government and the UK Treasury said they would continue to seek a solution. |
'Fair agreement' | 'Fair agreement' |
Speaking after the latest talks, Mr Hands said: "We discussed a number of issues, there are still a number of issues out there. | Speaking after the latest talks, Mr Hands said: "We discussed a number of issues, there are still a number of issues out there. |
"I think we need to get a deal that is fair to tax payers in Scotland and fair to tax payers across the UK. | "I think we need to get a deal that is fair to tax payers in Scotland and fair to tax payers across the UK. |
"That is one of the key considerations of the Smith agreement - tax payer fairness - and we need to make sure we can get a deal that both governments can sell to their parliaments as well." | "That is one of the key considerations of the Smith agreement - tax payer fairness - and we need to make sure we can get a deal that both governments can sell to their parliaments as well." |
Mr Swinney told BBC Scotland: "We are working very hard to try to secure an agreement but I don't think we should underestimate the scale of the issues that we have to overcome to secure that agreement. | Mr Swinney told BBC Scotland: "We are working very hard to try to secure an agreement but I don't think we should underestimate the scale of the issues that we have to overcome to secure that agreement. |
"We want a position whereby the tax payers in Scotland and tax payers in the rest of the UK are no better and no worse off as a consequence of the devolution of these responsibilities." | "We want a position whereby the tax payers in Scotland and tax payers in the rest of the UK are no better and no worse off as a consequence of the devolution of these responsibilities." |
He added: "I am not going to set any barriers in the way of getting an agreement. I am determined to get an agreement - but only one that is fair to Scotland." | He added: "I am not going to set any barriers in the way of getting an agreement. I am determined to get an agreement - but only one that is fair to Scotland." |
Scottish ministers had previously said they want a fiscal framework deal agreed this week so it can be scrutinised by Holyrood. | Scottish ministers had previously said they want a fiscal framework deal agreed this week so it can be scrutinised by Holyrood. |
The breakthrough needed on the fiscal framework will underpin new powers for Holyrood. | The breakthrough needed on the fiscal framework will underpin new powers for Holyrood. |
It has been claimed the block grant ministers in Edinburgh get from the Treasury could be cut by £7bn if certain calculations are used. | It has been claimed the block grant ministers in Edinburgh get from the Treasury could be cut by £7bn if certain calculations are used. |
But the UK government has insisted that a good deal is on the table. | But the UK government has insisted that a good deal is on the table. |
On Sunday, Mr Swinney pledged that key documents used to agree any new funding deal for Scotland would be published for scrutiny. | On Sunday, Mr Swinney pledged that key documents used to agree any new funding deal for Scotland would be published for scrutiny. |
Shadow Scottish Secretary, Labour MP Ian Murray, said it was "deeply disappointing" that a deal had not been reached. | |
He added: "Both John Swinney and Greg Hands need to clear their diaries until a deal is done. This deal is now all that stands between our politicians and the powers necessary to make Scotland fairer. | |
"We all agree on that - it's time to get on with it." |