This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/news/uk-scotland-scotland-politics-35548190
The article has changed 8 times. There is an RSS feed of changes available.
| Version 0 | Version 1 |
|---|---|
| Fiscal framework talks deadline may be extended | Fiscal framework talks deadline may be extended |
| (35 minutes later) | |
| The deadline for a deal underpinning how Scotland's future finances will work may slip as negotiations continue on the so-called fiscal framework. | The deadline for a deal underpinning how Scotland's future finances will work may slip as negotiations continue on the so-called fiscal framework. |
| A deal was meant to be agreed by Friday, but MSPs are expected to suggest delaying that. | A deal was meant to be agreed by Friday, but MSPs are expected to suggest delaying that. |
| The prime minister has said the Scottish government must be prepared to give ground. | The prime minister has said the Scottish government must be prepared to give ground. |
| But key opposition politicians have told BBC Scotland they back the Scottish government's stance. | But key opposition politicians have told BBC Scotland they back the Scottish government's stance. |
| Talks over the fiscal framework have been going on for several months, but have stalled over differences of opinion on the Smith Commission's "no detriment" principle - the idea that any deal should not impact adversely on the budgets of Scotland or the rest of the UK. | |
| The Scotland Bill on new powers for the Scottish Parliament, which is currently going through Westminster, cannot proceed until an agreement is reached. | |
| Scottish Finance Secretary John Swinney said Scotland stood to lose about £3bn over 10 years under proposals put forward by the UK Treasury. | Scottish Finance Secretary John Swinney said Scotland stood to lose about £3bn over 10 years under proposals put forward by the UK Treasury. |
| This would be because Scotland's population is expected to grow more slowly than the UK's. | This would be because Scotland's population is expected to grow more slowly than the UK's. |
| Scottish ministers have argued that they cannot effectively tackle slower population growth without immigration powers. | Scottish ministers have argued that they cannot effectively tackle slower population growth without immigration powers. |
| Six members of the Smith Commission which drew up the blueprint for the devolution settlement, including senior Labour, Liberal Democrat and Scottish Green members, have said they broadly support the Scottish government over the issue. | |
| They include Labour's Iain Gray, Liberal Democrat Tavish Scott and Green co-convenor Maggie Chapman, who explicitly back calls for budget protection from the population effect. | They include Labour's Iain Gray, Liberal Democrat Tavish Scott and Green co-convenor Maggie Chapman, who explicitly back calls for budget protection from the population effect. |
| Mr Gray said: "To a degree I think I largely agree with John Swinney on this position. What has been talked about is a population trend which is in place and would be nothing to do with decisions that had been taken in Scotland. In my view it does have to be factored into the discussions." | |
| Mr Scott agreed it was "logical" that the new fiscal framework should take Scotland's slower population growth into account. | |
| And Ms Chapman said: "We heard time and time again during the referendum campaign that if Scotland voted 'No' it would be better for everybody because we were all in this together. | |
| "Under that principle, the UK government has a responsibility to ensure that Scotland does not face detriment." | |
| Meanwhile, a House of Commons committee has called on the two governments to explore an adjusted version of the method favoured by the Scottish government in order to find a solution to the apparent deadlock. | |
| The method - known as per capita indexed deduction - would take Scotland's slower population growth into account. | |
| The Scottish Affairs Committee said an additional adjustment could be applied to secure the principle of taxpayer fairness for both Scotland and the rest of the United Kingdom. | |
| It has also suggested that the operation of the new fiscal framework should be reviewed after four years. | |
| More attractive | |
| During Prime Minister's Questions on Wednesday, David Cameron said "no-one is keener on agreement" than he was. | |
| But in a letter to First Minister Nicola Sturgeon, Mr Cameron said the Scottish government "need to be prepared to move towards us". | But in a letter to First Minister Nicola Sturgeon, Mr Cameron said the Scottish government "need to be prepared to move towards us". |
| He said any deal must to be fair for taxpayers across the UK as well as in Scotland, and claimed the Scottish government seemed to lack confidence in its ability to make Scotland an even more attractive place for people to live. | He said any deal must to be fair for taxpayers across the UK as well as in Scotland, and claimed the Scottish government seemed to lack confidence in its ability to make Scotland an even more attractive place for people to live. |
| Mr Swinney responded: "Any mechanism that would systematically reduce the Scottish government budget simply as a result of devolution and before the Scottish government makes any policy choices is unacceptable and will not be agreed by the Scottish government". | |