COMMONS

Chief Secretary to the Treasury questioned on fiscal framework

29 January 2016

The Scottish Affairs Committee holds an evidence session to examine progress in establishing a funding settlement to underpin new powers to the Scottish Parliament.

Witnesses

Wednesday 3 February 2016, Committee Room 18, Palace of Westminster

At 2.00pm

  • Rt Hon Greg Hands, Chief Secretary to the Treasury
  • Ms Lindsey Whyte, Deputy Director, Devolution, HM Treasury

Chair's comment

Committee Chair Pete Wishart said:

"The clock is ticking in securing a deal on the fiscal framework and we need to probe the Chief Secretary to the Treasury on why there seems to be an impasse.

This is the first time that the Government has given direct evidence to a Parliamentary committee on the fiscal framework and it is important we get a sense of what they see as the key issues. With a deadline of 12 February close at hand, we will be seeking assurances from Mr Hands that a deal will be reached in time."

Background

Known as the "fiscal framework", this mechanism is arguably the most important, and complex, part of the latest round of devolution. The fiscal framework will determine how much the block grant, Scotland’s primary source of funding, will be affected by the revenue and spending powers that are being devolved under Scotland Bill.

It will set out the borrowing limits for the Scottish Government and ensure that the actions of one Government will not cause financial detriment to the other.

Further information

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