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Ruth Davidson calls for fiscal framework compromise Ruth Davidson calls for fiscal framework compromise
(35 minutes later)
Scottish Conservative leader Ruth Davidson is pushing for a compromise between the Scottish and UK governments over deadlocked fiscal framework talks.Scottish Conservative leader Ruth Davidson is pushing for a compromise between the Scottish and UK governments over deadlocked fiscal framework talks.
Talks over a financial deal to underpin new devolved powers are ongoing.Talks over a financial deal to underpin new devolved powers are ongoing.
Ms Davidson has proposed a compromise which would see both sides give some ground to agree a shorter term deal which would be reviewed in five years.Ms Davidson has proposed a compromise which would see both sides give some ground to agree a shorter term deal which would be reviewed in five years.
First Minister Nicola Sturgeon has written to David Cameron calling for him to step in over the matter.
Holyrood's devolution committee wants both sides to present their cases when called to give evidence on 23 February.Holyrood's devolution committee wants both sides to present their cases when called to give evidence on 23 February.
Scottish Finance Secretary John Swinney has held talks with his Treasury counterpart Greg Hands over the phone - the latest negotiations in a process which has lasted for months.Scottish Finance Secretary John Swinney has held talks with his Treasury counterpart Greg Hands over the phone - the latest negotiations in a process which has lasted for months.
Mr Hands is currently on holiday with his family, but a spokeswoman insisted he could return "at any time" if the Scottish government was "willing to make a substantial move".Mr Hands is currently on holiday with his family, but a spokeswoman insisted he could return "at any time" if the Scottish government was "willing to make a substantial move".
'No detriment''No detriment'
The two sides differ on key parts of the deal, in particular their interpretation of the "no detriment" principle called for by the Smith Commission on further powers for Scotland.The two sides differ on key parts of the deal, in particular their interpretation of the "no detriment" principle called for by the Smith Commission on further powers for Scotland.
This means neither the Scottish or UK budgets should be left worse off in future by the finalised agreement.This means neither the Scottish or UK budgets should be left worse off in future by the finalised agreement.
The Scottish government claims the Treasury's latest offer would amount to an "almost £3bn cut", while Mr Hands insists an offer tabled by Mr Swinney is "not logical" and "not fair" to taxpayers across the rest of the UK.The Scottish government claims the Treasury's latest offer would amount to an "almost £3bn cut", while Mr Hands insists an offer tabled by Mr Swinney is "not logical" and "not fair" to taxpayers across the rest of the UK.
The deal proposed by Ms Davidson would see both parties give some ground.The deal proposed by Ms Davidson would see both parties give some ground.
She wants the Scottish government to agree to the UK government's new method of calculating the amount of money it receives each year from the Treasury.She wants the Scottish government to agree to the UK government's new method of calculating the amount of money it receives each year from the Treasury.
In return, she wants the UK government to guarantee that the devolved administration would not receive "a penny less" than it would under its preferred mechanism, effectively insuring Holyrood against any budget shortfall.In return, she wants the UK government to guarantee that the devolved administration would not receive "a penny less" than it would under its preferred mechanism, effectively insuring Holyrood against any budget shortfall.
This deal would then be reviewed in full after a five year trial period.This deal would then be reviewed in full after a five year trial period.
Both Mr Swinney and Mr Hands have voiced hopes that a deal can be struck this week, although both also say the onus is on the other to cede ground.Both Mr Swinney and Mr Hands have voiced hopes that a deal can be struck this week, although both also say the onus is on the other to cede ground.
Meeting offer
Prime Minister David Cameron has said that "no one is keener" than he is to reach an agreement, but also warned that the Scottish government would have to be ready to "move towards" his position.Prime Minister David Cameron has said that "no one is keener" than he is to reach an agreement, but also warned that the Scottish government would have to be ready to "move towards" his position.
Ms Sturgeon, who wrote to Mr Cameron outlining the Scottish government's position on the no detriment principle, has called on the prime minister to step in to help resolve the dispute.
In her latest letter, Ms Sturgeon offered to meet Mr Cameron for talks on the deal, saying the present proposal would "deliver substantial detriment to the Scottish budget."
'Signal movement'
She added: "The chief secretary's continued reluctance to entertain this proposal makes it hard to avoid the conclusion that your government is unwilling to agree the principle of 'no detriment' in the terms set out in my letter to you.
"If that were the case it would mean, in my view, that you had failed to honour both your pre-referendum vow and your commitment to implement in full the recommendations of the Smith Commission. I think that view would be widely shared in Scotland.
"I would suggest that it is the Treasury, not the Scottish government, that now needs to signal movement on the issue of block grant adjustment."
In the letter Ms Sturgeon also raised wider concerns about funding.
The Scottish government wants several hundred million pounds to set up a devolved welfare system, using powers included in the Scotland Bill, but she said the UK government was only offering £50m towards this.