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More talks held on fiscal framework for Holyrood’s new powers

In this photo illustration, A man holds a Saltire flag outside the Scottish Parliament on May 6, 2009 in Edinburgh, Scotland. Today marks the 10th anniversary of the first Holyrood election polling day, before the Scottish Parliament gained full powers on July 1, 1999.
In this photo illustration, A man holds a Saltire flag outside the Scottish Parliament on May 6, 2009 in Edinburgh, Scotland. Today marks the 10th anniversary of the first Holyrood election polling day, before the Scottish Parliament gained full powers on July 1, 1999.

Scottish and UK ministers have taken part in further discussions over funding for Scotland’s new powers as protracted negotiations to secure a deal continue.

Chief Secretary to the Treasury Greg Hands is on holiday but spoke to Scotland’s Deputy First Minister John Swinney over the phone.

Mr Hands has offered to return from his break “if the Scottish Government is willing to make a substantial move” in the negotiations, the Treasury said.

Meanwhile, Mr Swinney is available to travel to London any time this week to resume face-to-face negotiations, according to the Scottish Government.

Despite months of talks, the two governments have been unable to reach a deal on the fiscal framework for the Scotland Bill.

They disagree on how Scotland’s funding should be adjusted to take into account the new powers in a way which is fair to both Scottish and UK taxpayers, and is of no detriment to either side.

Holyrood’s Devolution Committee has demanded a deal ahead of its next meeting on February 23, when it will hear from Mr Swinney and Scottish Secretary David Mundell.

Mr Hands has been invited to Holyrood’s Finance Committee the following day.

A Scottish Government spokeswoman said: “The Deputy First Minister has spoken to the Chief Secretary and work is ongoing to secure an agreement.

“The Deputy First Minister remains available to travel to London at any point this week to resume face to face negotiations to secure a fiscal framework agreement in line with the principles of the Smith Commission.”

A Treasury spokeswoman said: “The UK Government remains absolutely committed to implementing the Smith Agreement in full and in line with the no detriment principles.

“The offer we have placed on the table would have delivered more funding for the Scottish Government than the existing Barnett formula since devolution in 1999.

“From the outset, our position on the fiscal framework has been clear – we stand ready to do a deal that is fair for Scotland and fair for the rest of the UK.

“The Chief Secretary is away for a long-planned, short half-term break with his family but has made clear that he is ready to return at any time if the Scottish Government is willing to make a substantial move.”

The Treasury spokeswoman added that the phone call between Mr Hands and MrSwinney covered “a number of substantive issues”.

She said: “We will continue to speak with the Scottish Government in the coming days and remain confident that a deal can be reached that is fair to Scotland and fair to the rest of the UK, now and in the future.”