Summary

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  • Deputy First Minister John Swinney gave evidence to the Devolution Committee on the fiscal framework negotiations

  • The first minister gave a statement on the fiscal framework negotiations and returned to announce a deal had finally been struck

  • The Devolution Committee gathered again to hear from Scottish Secretary David Mundell on the fiscal framework deal

  1. Bacgkround: What are the indexation options?published at 14:31 Greenwich Mean Time 23 February 2016

    There are three main options:

    1. Indexed deduction - the cut to the Scottish block grant is adjusted by the percentage change in income tax revenues in the rest of the UK
    2. Per capita indexed deduction - a version of indexed deduction that protects Scotland from the effects of having slower population growth than the rest of the UK
    3. Levels adjustment - the cut to the Scottish block grant is adjusted by Scotland's population share of any change in cash raised in income tax in the rest of the UK

    Glasses on paperworkImage source, Thinkstock

    It is understood the UK government favours a form of levels adjustment, while the Scottish government prefers per capita indexed deduction.

    Academics disagree about which model would produce the "fairest" outcome.

    Articles by Prof Jim Gallagher, external and Prof Anton Muscatelli, external give a flavour of the debate.

  2. 'Breach of the Vow'published at 14:31 Greenwich Mean Time 23 February 2016

    Ms Sturgeon says if the government was to agree the Treasury's preferred approach, then over the 10 years from the end of the transitional period in 2022, Scotland's budget would be reduced systematically, compared to Barnett, by a cumulative total of £2.5 billio

    "That would not live up to Smith because it would not protect Barnett and therefore it would be a clear breach of the Vow."

  3. Movement towards a dealpublished at 14:30 Greenwich Mean Time 23 February 2016

    Ms Sturgeon says the UK government has now signalled some movement towards her position.

    The Treasury has now offered to deliver - on a transitional basis - a no detriment outcome for the period up to 2021/22. 

    Nicola Sturgeon

    The first minister says, however the key remaining question is what happens at the end of that five year period.

    This is now the only substantive issue standing in the way of agreement, she says. 

  4. No agreement yetpublished at 14:28 Greenwich Mean Time 23 February 2016

    The first minister says: "The proposal we have put forward guarantees no detriment to taxpayers, both in Scotland and in the rest of the UK.

    "However we remain unable to reach an agreement with the UK Government on this issue."

  5. Call for Per Capita Indexed Deductionpublished at 14:28 Greenwich Mean Time 23 February 2016

    The first minister says the key issue on which the government's have not yet reached agreement is the block grant adjustment.

    Purse containing bank notes

    The Scottish government has considered a number of proposals put forward by the UK Government - all of which would deliver detriment to the Scottish budget.

    The method of adjusting the block grant that the Scottish Government has proposed – Per Capita Indexed Deduction - would deliver no detriment as set out by the Smith Commission.

  6. Agreement near on all issues except the block grant adjustmentpublished at 14:26 Greenwich Mean Time 23 February 2016

    Ms Sturgeon says the Scottish government has engaged constructively in the negotiations. 

    Nicola Sturgeon

    "I am pleased to advise Parliament that we have now reached, or are close to reaching an agreed position, on all of the main issues other than block grant adjustment mechanism."

  7. Background: John Swinney says one key issue is stopping a dealpublished at 14:25 Greenwich Mean Time 23 February 2016

    Scotland's Finance Secretary John Swinney has told MSPs there is one "persistent" issue which is preventing a deal on the fiscal framework.

    He appeared before Holyrood's devolution committee to explain why negotiations had not been concluded.

    John Swinney being quizzed by members of Holyrood's devolution committee
    Image caption,

    John Swinney was quizzed by members of Holyrood's devolution committee this morning

    Mr Swinney said agreement had been made in "all" areas except on the block grant adjustment.

    The UK government's Scottish Secretary David Mundell appears before the committee later.

  8. Determination for fiscal framework dealpublished at 14:24 Greenwich Mean Time 23 February 2016

    Ms Sturgeon says she is determined to see a fair deal emerge from the fiscal framework negotiations.

  9. Fiscal framework statementpublished at 14:22 Greenwich Mean Time 23 February 2016

    First Minister Nicola Sturgeon delivers an emergency statement on the fiscal framework.

  10. The government will get on with the job of reforming primary carepublished at 14:22 Greenwich Mean Time 23 February 2016

    Lib Dem MSP Jim Hume says it is the RCGP that is saying GP funding has reduced by £1.6bn over the last ten years.

    The health secretary says the government will get on with the job of reforming primary care.

  11. Doctors expressing concern says former GPpublished at 14:21 Greenwich Mean Time 23 February 2016

    Conservative MSP Nanette Milne says senior doctors are expressing concerns about the funding of general practice.

    Conservative MSP Nanette Milne
    Image caption,

    Conservative MSP Nanette Milne a former GP herself

    Ms Robison says the draft budget for 2016-17 sees an additional £45m of funding through the primary care fund.

  12. GP statistics from both sides of the argumentpublished at 14:19 Greenwich Mean Time 23 February 2016

    Dr Simpson says there are fewer GPs per head of population than there were in 2009.

    The Labour MSP says the share of funding going to primary care has been cut in the recent budget.

    Labour MSP Richard Simpson
    Image caption,

    Labour MSP Richard Simpson

    The health secretary says the number of GPs working in Scotland has increased by 7% under the government.

  13. GP contract negotiations 'are going very well indeed'published at 14:16 Greenwich Mean Time 23 February 2016

    Dr Richard Simpson asks the health secretary to publish the principles underpinning the GP contract.

    GP checking patient's blood pressure

    Ms Robison says GP spend as a percentage of total health spend has remained relatively stable.

    The minister says the new contract negotiations "are going very well indeed". 

  14. Minister says investment in GP services has increasedpublished at 14:14 Greenwich Mean Time 23 February 2016

    Health Secretary Shona Robison says investment in GP services has increased each year since 2007-8.

    Health Secretary Shona Robison

    Scotland has the highest number of GPs per head of population in the UK, she insists.

  15. Background: GPs claim to have lost out on £1.6bn of fundingpublished at 14:14 Greenwich Mean Time 23 February 2016

    GPs have lost out on £1.6bn of investment over the last 10 years, according to the Royal College of General Practitioners Scotland. 

    It claims there have been "cumulative cuts" to general practice's share of NHS Scotland spending over a decade. 

    Nurses

    The RCGP Scotland is lobbying for general practice to receive 11% of the Scottish NHS budget. 

    But ministers insisted GP funding had increased each year under the SNP administration. 

  16. Reduction to GP fundingpublished at 14:12 Greenwich Mean Time 23 February 2016

    Labour MSP Richard Simpson asks the Scottish government what its position is on reports that GP funding has been reduced by £1.6 billion over the last 10 years. 

  17. Tory MSP and minister agree: Leaving the EU bad for exportspublished at 14:12 Greenwich Mean Time 23 February 2016

    Conservative MSP Jamie McGrigor asks if the minister agrees that leaving the EU would be bad for Scottish exports.

    Conservative MSP Jamie McGrigor
    Image caption,

    Conservative MSP Jamie McGrigor

      Ms Hyslop agrees.

  18. EU referendum franchise not acceptable says ministerpublished at 14:10 Greenwich Mean Time 23 February 2016

    Ms Hyslop says there are people who will vote in the Holyrood election but will be unable to vote in the EU referendum.

    "I don't think that is acceptable."

  19. Scottish government will argue for continued EU membershippublished at 14:07 Greenwich Mean Time 23 February 2016

    Europe Secretary Fiona Hyslop says the Scottish government had requested that the referendum not be held on 23 June as the campaign would cut across the Holyrood election.

    Europe Secretary Fiona Hyslop

    However, the Scottish government will now make the positive case for the UK's continuing membership of the EU, says the minister.

  20. Background: EU referendumpublished at 14:05 Greenwich Mean Time 23 February 2016

    A second independence referendum will "almost certainly" be demanded by Scots if the UK votes to leave the EU but Scotland does not, the first minister has said. 

    Nicola Sturgeon told the BBC's Andrew Marr many people in Scotland would object to being taken out of the EU "against their will". 

    Scotland and European Union flags

    David Cameron has announced that the EU referendum will be held on 23 June. 

    Ms Sturgeon insisted she would be arguing the case for the UK to stay in. 

    Earier this month the first minister was joined by her fellow first ministers in Wales and Northern Ireland have urged David Cameron not to hold an EU referendum in June, saying it would "distract" from devolved elections taking place in May.