Autumn statement: Scottish NHS 'will benefit by £125m'
Autumn statement: Scotland's Barnett block grant 'less important' to Scotland
(about 3 hours later)
Scotland's health service will be £125m better off as a result of Chancellor George Osborne's autumn spending statement, the UK government has said.
The UK government block grant to Scotland will fall by two-thirds when Holyrood is given control over income tax, the Chancellor has confirmed.
The claim came as it argued that, under independence, Scotland would have been £11.8bn worse off in the coming years.
George Osborne said more devolved powers would mean the "importance" of the Barnett formula "will effectively be reduced".
Mr Osborne is outlining his plans for the economy and the need for more austerity.
In its report last week, the Smith Commission recommended that some taxes should be raised and spent in Scotland.
The SNP said the chancellor had failed to meet any of his economic targets.
Tory chancellor Mr Osborne was addressing MPs ahead of the election.
Mr Osborne is delivering his final Autumn Statement at Westminster before the May 2015 UK election, amid hopes among businesses of a boost for the North Sea oil and gas industry.
His autumn statement was used to announce that Northern Ireland should have control over revenue-raiser Corporation tax.
Meanwhile, Scottish Secretary Alistair Carmichael said the latest UK government figures showed that, had Scotland voted for independence in September's referendum, the nation would have faced a funding gap in its first few years equivalent to the entire annual Scottish health budget.
That prompted the SNP administration at Holyrood to demand that Scotland should also have the power to set the levy north of the border.
The figure, he said, was based on the Scottish government's previous financial projections based on an oil price of $110 per barrel, which was now at $72.
The Treasury has so far rejected the calls from the Nationalists claiming that the case for Northern Ireland is different because it shares a land border with the Irish Republic.
"Thankfully the people of Scotland shut the door on the independence option and chose a united future with the rest of the UK," said Mr Carmichael.
Mr Osborne also announced changes to the UK's stamp duty system.
"People in Scotland were absolutely right in September to choose a United Kingdom with a united future that gives us the best of both worlds."
From midnight there will no longer be a "slab" approach to the property tax. Buyers will pay a gradual levy, similar to income tax.
Mr Carmichael added that the UK government's promise of increased Scottish Parliament powers was "on-track", following the recommendations of the Smith Commission on strengthening devolution.
This new system will apply north of the border until 1 April, 2015, when a Scotland-only property charge will be implemented.
Meanwhile, the SNP said Mr Osborne's promise in 2010 that debt would begin to fall as a share of GDP by 2014-15, that public sector net borrowing would fall to £20bn by 2015-16 and that the UK's finances would be in balance by the same year, had come to nothing.
It will have different bands to Mr Osborne's new system but it has been built on the same principle of a gradual levy.
SNP deputy leader Stewart Hosie said the chancellor must explain his failure to deliver economic growth and called on him to pledge "swift implementation" of the Smith recommendations.
The chancellor also announced a tax break for north sea oil and gas firms. He told MPs that lower oil prices were presenting a "challenge" to the industry.
Mr Hosie said: "Next May, the Scottish people will deliver their verdict on Mr Osborne's time as chancellor.
A new allowance is also being introduced and the full details will be announced tomorrow in Aberdeen by the Chief Secretary to the Treasury.
"As his austerity agenda continues to inflict pain across the country and his list of broken promises grows longer, Mr Osborne is rapidly running out of time to redeem himself."
