Scotland: Fiscal Framework

Lord Purvis of Tweed Excerpts

Wednesday 16th December 2015 Lords Chamber

Asked by

[Lord Purvis of Tweed]

To ask Her Majesty’s Government, in the light of talks on 14 December between the First Minister and the Prime Minister, when the fiscal framework agreement between the Scottish and United Kingdom governments will be finalised and published, and how it will be ratified.

[The Parliamentary Under-Secretary of State, Scotland Office (Lord Dunlop) (Con)]

My Lords, the Prime Minister and the First Minister met on Monday 14 December to discuss a framework which is fair both to the taxpayers of Scotland and the rest of the UK. The Joint Exchequer Committee will meet again shortly to continue discussions, with the aim of reaching final agreement in the new year. Once agreed, a framework would be signed by both Governments.

[Lord Purvis of Tweed (LD)]

My Lords, the Government said in the summer that agreement would be reached in the autumn, and in the autumn they said it would be reached in the winter. In the communiqué from the Joint Exchequer Committee last week, reference was made to the new year, but the First Minister of Scotland said after the meeting with the Prime Minister that the target for reaching agreement would now be mid-February—long after the proposed scheduling of the Committee stage of the Scotland Bill. When will agreement be reached? Given that this is of such significance for taxpayers across the whole United Kingdom—not just for those of us who are resident taxpayers in Scotland—is it not appropriate that, before Christmas, the underlying data for these discussions be published to enable much wider debate across civic Scotland and the UK, and indeed in Parliament?

[Lord Dunlop]

The Government want an agreement as soon as we can achieve it. I cannot offer any guarantees as to the end date, because there are two parties to these negotiations. However, I was very encouraged by what the First Minister said on Monday after the meeting with the Prime Minister. She and the Scottish Government want to reach an agreement, and she is optimistic that a deal can be done and is very keen that we should get on with it. That is absolutely what the UK Government want as well. Clearly, the fiscal framework will be a very detailed public document when it is agreed, and obviously, it will be made available to this House. We welcome full scrutiny of that agreement.