A new financing deal for the Scottish Parliament has been agreed by Nicola Sturgeon, the Scottish First Minister and David Cameron, the Prime Minister.
The announcement means that funding will remain at the same level as was established by the Barnett Formula in the 1970s where Scotland receives more spending per head than England. The Scottish Government will also now be able to borrow money to spend on schemes such as infra-structure projects. There will also be a fund of £200 million to help the Scottish Government to implement the new financial settlement.
George Osborne, the Chancellor of the Exchequer, said:
“Today we’ve secured a stronger Scotland in a stronger UK. The arrangements we’ve reached with the Scottish Government are fair to Scotland and fair to taxpayers in the rest of the UK.
This enables us to deliver on the vow we made to the Scottish people and delivers one of the most powerful devolved Parliaments in the world and the economic and national security that comes from being part of the UK. This clears the way for the debate in Scotland to move on to how these tax and spending powers should be used”.
Nicola Sturgeon, the Scottish First Minister, said:
“There will be not a single penny of detriment to the Scottish Government’s budget as a result of the devolution of powers during the transition period, for the next six years to March 2022″.