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New Scots powers 'not ruled out', says Alex Salmond New Scots powers 'not ruled out', says Alex Salmond
(40 minutes later)
Chancellor George Osborne has not ruled out new financial powers for Holyrood demanded by the SNP government, First Minister Alex Salmond has said.Chancellor George Osborne has not ruled out new financial powers for Holyrood demanded by the SNP government, First Minister Alex Salmond has said.
Mr Salmond has asked for control in areas including corporation tax and alcohol excise duties, following his party's landslide election win. Mr Salmond has asked for control, in areas including corporation tax and alcohol excise duties, following his party's landslide election win.
The first minister said a two-hour meeting with the chancellor was "constructive and positive". Both sides described the two-hour meeting as "constructive".
But Mr Orborne has ruled out a re-think of his North Sea oil tax hike. A spokesman for the chancellor said "nothing spectacular" had come from the meeting on his North Sea oil tax hike.
Mr Salmond said the UK Budget measure, which will see an extra £2bn tax on oil and gas production, could cost 10,000 potential jobs.Mr Salmond said the UK Budget measure, which will see an extra £2bn tax on oil and gas production, could cost 10,000 potential jobs.
The chancellor is willing to consider widening proposals to help sustain investment in the sector, in the form of broader field allowances. The chancellor has previously said he was willing to consider widening proposals to help sustain investment in the sector, in the form of broader field allowances.
Elsewhere, Mr Salmond wants devolution of further borrowing powers, control of corporation tax, alcohol excise duties and money from the fossil fuel levy.Elsewhere, Mr Salmond wants devolution of further borrowing powers, control of corporation tax, alcohol excise duties and money from the fossil fuel levy.
That would go further than the new Holyrood powers proposed in the Scotland Bill, currently going through Westminster, and the UK government has said the SNP must make a proper case for increased responsibility.That would go further than the new Holyrood powers proposed in the Scotland Bill, currently going through Westminster, and the UK government has said the SNP must make a proper case for increased responsibility.
The chancellor' s spokesman said Mr Osborne had agreed to consider the first minister's arguments, and, on corporation tax, would consider evidence from Northern Ireland.
The chancellor has agreed to look at fossil fuel levy receipts again but "hasn't promised anything", the spokesman said.
In his Budget, Mr Osborne raised supplementary tax on oil and gas production from 20% to 32%, to fund a cut in fuel duty.In his Budget, Mr Osborne raised supplementary tax on oil and gas production from 20% to 32%, to fund a cut in fuel duty.
The meeting was scheduled for just half an hour. In the end the two ministers met for close to two hours.The meeting was scheduled for just half an hour. In the end the two ministers met for close to two hours.
Alex Salmond says that should be read as a recognition from the chancellor of the first minister's new mandate from the Scottish people in the elections.Alex Salmond says that should be read as a recognition from the chancellor of the first minister's new mandate from the Scottish people in the elections.
Top of the first minister's list today was the tax hike on North Sea oil producers, which he believes is damaging investment in the sector.Top of the first minister's list today was the tax hike on North Sea oil producers, which he believes is damaging investment in the sector.
Although George Osborne won't scrap the increase, he's told Mr Salmond that he'll consider more help for producers in the sector in the form of broader field allowances.Although George Osborne won't scrap the increase, he's told Mr Salmond that he'll consider more help for producers in the sector in the form of broader field allowances.
But the first minister had much more to demand - further borrowing powers, control of corporation tax, alcohol excise duties and money from the fossil fuel levy.But the first minister had much more to demand - further borrowing powers, control of corporation tax, alcohol excise duties and money from the fossil fuel levy.
He says the chancellor ruled nothing out - but that also means he's ruled nothing in.He says the chancellor ruled nothing out - but that also means he's ruled nothing in.
And although Mr Osborne and the UK government might be listening, handing over all of those powers is another thing.And although Mr Osborne and the UK government might be listening, handing over all of those powers is another thing.
Oil and Gas UK, the trade association representing the offshore sector, has said the tax rise would cost the industry as much as £50bn over the next 10 years.Oil and Gas UK, the trade association representing the offshore sector, has said the tax rise would cost the industry as much as £50bn over the next 10 years.
Mr Salmond told Radio Four's Today programme: "The problem with the smash and grab raid, the extra £2bn on top of the other £11bn the chancellor was expecting from Scottish oil revenues this year, is that it is going to cost a lot of jobs.Mr Salmond told Radio Four's Today programme: "The problem with the smash and grab raid, the extra £2bn on top of the other £11bn the chancellor was expecting from Scottish oil revenues this year, is that it is going to cost a lot of jobs.
"It will actually make future chancellors worse off in the long-term because it will lead to a substantial reduction in what investment would have been.""It will actually make future chancellors worse off in the long-term because it will lead to a substantial reduction in what investment would have been."
The Treasury has said it expected offshore company profits to remain high, but, if it identified some potential impact on investment, would consider using allowances to deal with it.The Treasury has said it expected offshore company profits to remain high, but, if it identified some potential impact on investment, would consider using allowances to deal with it.
Mr Osborne's department also said it was continuing to liaise with the industry on setting the level of its fair fuel stabiliser, where taxes would fall to reflect a cut in the oil price. Mr Osborne's department has also said it was continuing to liaise with the industry on setting the level of its fair fuel stabiliser, where taxes would fall to reflect a cut in the oil price.
Meanwhile, the new Scottish Liberal Democrat leader, Willie Rennie, was also in London to meet with party colleagues in the coalition, including Armed Forces Minister Nick Harvey, Business Secretary Vince Cable and Michael Moore, the Scottish secretary.Meanwhile, the new Scottish Liberal Democrat leader, Willie Rennie, was also in London to meet with party colleagues in the coalition, including Armed Forces Minister Nick Harvey, Business Secretary Vince Cable and Michael Moore, the Scottish secretary.
Mr Rennie was pressing the case to retain the two under-threat Scottish RAF bases, and campaigning for the planned new green investment bank to be based north of the border.Mr Rennie was pressing the case to retain the two under-threat Scottish RAF bases, and campaigning for the planned new green investment bank to be based north of the border.
Turning to the SNP's forthcoming independence referendum, the Scots Lib Dem leader added "The first minister is here on much more negative terms as he starts to try and split the UK. Turning to the SNP's forthcoming independence referendum, the Scots Lib Dem leader added: "The first minister is here on much more negative terms as he starts to try and split the UK.
"Mr Salmond is very good at criticising and undermining other governments, but he himself has given no indication on how he plans to makes an independent Scotland work.""Mr Salmond is very good at criticising and undermining other governments, but he himself has given no indication on how he plans to makes an independent Scotland work."