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Funding Framework Deal For Scotland Published
The agreement between the Scottish and UK Governments on the new fiscal framework north of the Border has been published.
The key deal over Scotland's future funding when new powers over tax and welfare are transferred to MSPs was agreed on Tuesday after months of talks between the two governments.
The details confirm the "no detriment'' principle and that an independent review of the block grant adjustment will be held by the end of 2021.
The Scottish Government said there will be £200 million to support the implementation of new social security powers, and Scotland's capital borrowing limit will be increased to £3 billion, with an annual borrowing limit of £450 million.
New resource borrowing powers to deal with increased budget volatility will be capped at £1.75 billion and the Scottish Fiscal Commission will now prepare independent forecasts of Scottish tax revenue, demand-driven welfare spending and onshore GDP, the Scottish Government publication showed.
Deputy First Minister John Swinney said: "The fiscal framework agreement with the UK Government implements the Smith Commission and is fair to taxpayers in Scotland and across the UK.
"The agreement makes clear that the Barnett formula will remain and that Scotland's block grant will be adjusted annually to ensure no detriment to Scotland as a result of having new powers.
"The fiscal framework increases the Scottish Parliament's financial responsibility and allows future Scottish Governments to exercise new powers effectively to create a fairer and more prosperous Scotland. I am pleased the agreement has now been published to allow Parliament and the public to scrutinise and judge for themselves.''
Chief Secretary to the Treasury, Greg Hands, said: "Today we have published the details underpinning the historic fiscal framework deal, bringing us one step closer to Scotland having one of the most powerful devolved Parliaments in the world.
"This yet again shows how the UK and Scottish Governments can work effectively together for the interests of taxpayers across the whole of the UK.
"Now the details of the deal have been agreed, the debate can shift to what really matters - how these powers will be used to create a stronger Scotland.''
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