February deadline set for new financial powers deal

A final deal on the fiscal framework accompanying the Scotland Bill has to be in place by February, First Minister Nicola Sturgeon has agreed with Prime Minister David Cameron at a meeting in Downing Street yesterday.

The fiscal framework is crucial to determining Scotland’s budget once new tax powers are devolved and both parties have now agreed that the arrangement should be a fair deal for both parties.

The First Minister also used the meeting to raise the issue of the strong opposition in Scotland to the Trade Union Bill with the Prime Minister.

Following the meeting, the Ms Sturgeon said: “I have made clear to the Prime Minister that I want to conclude a deal on the fiscal framework in time for the Scotland Bill to pass into law before the Scottish elections, however, I will not sign up to a deal that is unfair to Scotland.

“Getting this agreement right is vital to ensure that Scotland isn’t worse off by hundreds of millions of pounds a year simply as a result of the transfer of powers that have been promised.

“We were both able to agree that the financial deal that goes alongside the extra powers transferring to Scotland must be fair for everyone involved and that both governments want to secure a deal by February to allow the Scotland Bill to move forward.

“Following today’s discussion I hope the Prime Minister now understands the issues of key importance to the Scottish Government and that some real progress can be made towards an agreement.”

On the Trade Union Bill the First Minister said: “There is widespread opposition from across Scottish society and the Scottish Parliament to the Trade Union Bill and it is essential that the Prime Minister understands that.

“Unfortunately the Prime Minister does not share my concerns. However, we will continue to work to find ways to prevent this damaging legislation coming into force north of the border.”