The UK government’s response to the Lords Economic Affairs Committee Report: "A Fracturing Union? The Implications of Financial Devolution to Scotland"

This is the government's response, published 20 January 2016.

Summary written by Accountability Index from the government's response. It is not the government's own words.

The government "warmly welcomes" the Lords Economic Affairs Committee report and says it is "committed to delivering the All-Party Smith Agreement in full", while disagreeing with the Committee on some points.

• On the fiscal framework, the government "agrees with the recommendation that the Bill and the fiscal framework are best considered together". It says it cannot unilaterally give an end date for the negotiations because "it involves two parties", and it commits to depositing updates after each Joint Exchequer Committee meeting.
• On the Barnett Formula, the government "notes the Committee's findings" and says there is "a clear commitment across Parliament to retain the Barnett Formula", which will continue to determine changes in the block grant.
• On income tax devolution, the government "disagrees that it has been selected without full consideration of the consequences" and "does not agree that the link between the Scottish electorate and the UK government will be weakened".
• On scrutiny, the government "fully agrees with the principle" of scrutiny, but has "some concerns" about giving the OBR a formal role and says "no decisions have been taken". On Barnett transparency, it "will consider the Committee's recommendation ahead of Report stage of the Bill".

Read the government's response ↗ Report an error