Responding to Mr Carmichael in the House of Commons, Shadow Scottish Secretary Margaret Curran says: "We have secured Scottish guarantees over the voting rights on the budget."

ICAS, a professional body of Chartered Accountants, has welcomed the Smith Commission recommendations on further devolution to Scotland.

Chief Executive Anton Colella said: "This is a huge moment for Scotland. With this significant transfer of powers comes major new responsibility for the Scottish Parliament.

"We believe oversight of Government and the way the Parliament works must now be transformed. Scotland needs a new era of accountability, scrutiny and transparency to go in hand with our new financial powers."

Image source, PA

"This maintains the single UK market and we hope will provide the right conditions to grow business and prosperity in Scotland."

ICAS also welcomed recommendations to improve collaboration between the Scottish and UK Governments.

Alistair Carmichael adds: "Having a more powerful Scottish parliament inside a strong United Kingdom will open the door to more constitutional change in the United Kingdom.

"We can achieve home rule all round."

Mr Carmichael says the Smith recommendations are "a significant achievement and a historic moment for Scotland and the United Kingdom".

Scottish Secretary Alistair Carmichael has started speaking about the Smith Commission in the House of Commons.

He said: "We back the agreement and will produce draft legislation in January."

Jim Murphy adds: ""The Vow has been met. Let's now talk about values and actions."

"I have set out very clearly what I will do if I am elected Scottish Labour leader and First Minister. I will ask the wealthiest few in Scotland to pay a little bit more tax so that we can support our small businesses and reduce poverty.

"Nicola Sturgeon must say once and for all whether she would do the same."

Scottish Labour leadership candidate Jim Murphy said the vow of more powers for the Scottish parliament has "not only been delivered but exceeded".

Image source, Getty Images

He said: "The days of political parties in Scotland promising the earth but blaming someone else for their failure to deliver are well and truly over. There will be no hiding place for those parties which preach social justice but duck for cover when called to act.

"The terms of the political debate in Scotland have now changed entirely. No longer will we obsess about the delivery of powers. That question has been answered today. The debate now moves from powers to policy."

David Cameron, speaking on the BBC News Channel, said: "I'm delighted with what's been announced, we are keeping our promises and we're keeping our United Kingdom together."

He added: "I always said a No vote didn't mean no change. Indeed we made a vow of further devolution to Scotland and today we show how we're keeping that vow, and will continue to keep that promise.

"The Scottish parliament is going to have much more responsibility in terms of spending money, but it will also have to be accountable for how it raises taxes to fund that spending and I think that's a good thing.

"I think the report today also makes the case for English votes for English laws unanswerable and we'll be taking action on that shortly.

"It's a good day for the UK."

Liz Cameron, director and chief executive of the Scottish Chambers of Commerce, welcomed the Smith commission's recommendations to help "maximise business growth".

She said: "Time is of critical importance and our priority is to ensure that the Scottish business community is at the core of implementing these recommendations.

"Now, the responsibility is on politicians to come together and focus their collective talents and skills to deliver upon these recommendations and create the new Scotland which has the right economic levers to support our businesses, which are the creators of jobs and wealth."

Grahame Smith, general secretary of the Scottish Trades Union Congress (STUC) said he was "underwhelmed" by the package of recommendations which "does not meet our aspirations".

He added: "STUC continues to believe that control over employment law, equalities and minimum wages is a necessity if inequality is to be effectively challenged. We will continue to press for this.

"The no detriment clause and retention of the Barnett Formula is to be welcomed but the proposals for further fiscal devolution do not go far enough. Without the key powers over inheritance and capital gains taxes, meaningful tax and land reform will be more difficult. "

Ruth Davidson, the leader of the Scottish Conservatives, has endorsed the Smith commission's proposals.

Image source, Conservative Party

She said: "This is a plan which, for the first time since devolution, brings real accountability and real responsibility to the Scottish Parliament.

"Future Scottish governments will have to look Scottish taxpayers in the eye when they are spending their money.

"Successive administrations have been able to claim credit for public spending, and then blame Westminster when it runs out.

"That now ends. The powers are there to do as they please."

Lee Wootton: It's 100% of income tax raised in Scotland Nicola, of course it's gonna remain shared or did you want control of all income tax in the UK cause that's the only way you were gonna get 100% of income tax! Scotland has gotten a good start here. Don't blow it for us by screaming about what we didn't get!

Jacqueline Baird: I just knew it. Five minutes gone and the SNP have started already complaining. No matter what was on offer it was not going to be enough. The panel was made up to represent all of the Scottish people. The majority of people did not vote for independence. Scotland has a lot more than the ordinary working class people in the rest of the UK.

Peter: Revise the Barnett formula in line with the outcome of this report. English and Welsh taxes for English and Welsh people. The People's Republic of Caledonia must live within its own means with no subsidies from the rest of the UK.

Martin Kettle, of The Guardian:, external John Swinney sets out the SNP's Smith Commission as a betrayal narrative.

Tom Gordon, Scottish Political Editor of the Sunday Herald:, external "I'm just the referee," Lord Smith tells media briefing on #thevow as he repeatedly refuses to answer Qs on what it all means.

Anas Sarwar interim leader of the Scottish Labour Party, said of the Smith Commission agreement was "not in our own interests but in the interests of the Scotland and the people we serve".

Image source, PA

"People wanted more decisions taken closer to home and that is what we have delivered," he added.

"Today is a good day for Scotland and a good day for the Scottish Parliament."

The Association of Chartered Certified Accountants (ACCA) has said the Smith commission proposals must be carefully evaluated and only introduced if they are fair to both Scotland and the rest of the UK.

Image source, Getty Images

Craig Vickery, head of ACCA Scotland, said: "The closeness of the referendum vote made it clear to Westminster that the momentum for further devolution continues to build, and the Smith Commission proposals are the next step in delivering this.

"My concern is that politicians will choose the proposals they like or are easiest to implement rather than looking at the package as a whole and how the individual parts affect both Scotland and the rest of the UK."

He added: "The proposal for the full devolution of income tax is likely be of interest to most people, and with support from both Westminster and Holyrood looks likely to happen.

"I would caution against setting a timetable too quickly on this however; both HMRC and Revenue Scotland need to be given as much time as they need to put the processes in place, rather than it being rushed through to meet public expectation of change sooner rather than later."

Ewan Dow:, external So Iain Gray thinks #SmithCommission makes Scots Parl one of world's most powerful devolved Parls? German Länder just phoned. They laughed!

James Bundy:, external The #smithcommission shows that the UK government will keep to their promise of further devolution and get control of income tax and A.P.D

Euan Bryson:, external As they celebrate the Smith Commission, it is ironic that this report will consign unionist parties to the Scottish political history books.

Iain:, external #smithcommission Good start and well done to Lord Smith for banging heads together to this degree...but where next from here?

Gordon Brown will formally respond to the Smith Commission recommendations in a speech to Scottish local councillors this weekend in Glasgow.

He will tell them: "The Vow to deliver a stronger Scottish Parliament within the UK has been kept, as promised, and the timetable for draft laws to be published in January will now be honoured, as promised."

Mr Brown will say that the Commission, by deciding that income tax is a shared UK tax and savings tax and personal allowances will not be devolved, has "rightly rejected the Conservative proposal".

Shadow Scottish Secretary Margaret Curran says the commission's recommendations are "a promise kept and an agreement delivered".

Image source, PA

She adds: "Today we respond to the call for change that we heard on 18 September with extensive new powers for the Scottish Parliament. There shall be a stronger Scottish Parliament.

"Politics in Scotland has changed forever and people want power close to them. This agreement today meets that demand with extensive new powers over tax, welfare and job creation being passed to the Scottish Parliament."

Gordon Dewar, chief executive of Edinburgh Airport, welcomes the commission's recommendation that air passenger duty is devolved to the Scottish Parliament.

Image source, Edinburgh Airport

He adds: "This should not and need not wait for legislation on other tax changes.

"We strongly believe that there is a real case to see it devolved as soon as possible so that Scotland can capitalise fully on the benefits of this fantastic year where we have been in the global spotlight. The removal or reducing of this tax will see millions more passengers come to Scotland as our major airlines have indicated.

"Airline planners are finalising 2015 now and we run the risk of losing that momentum as those people who wish to visit us are deterred by the highest aviation taxes in the world."

Tim Reid
Political correspondent, BBC News

tweets:, external Formal consultative role for Scot Gov and Scot Parl "in the process of reviewing the BBC's Charter" #smithcommission.

Report says "strongly" believe abortion powers should be devolved and want "immediate" process to further consider #smithcommission