Fresh talks over Scotland Bill fiscal framework – BBC News

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Fresh talks aimed at reaching an agreement on the financial implications of further devolution to Scotland will be held in London later.

Scottish Finance Secretary John Swinney will meet UK government counterparts at the Treasury.

The new devolved powers set out in the Scotland Bill cannot go ahead without an agreement being reached.

Mr Swinney has previously said he would veto any deal that was unfair.

The Smith Commission recommended that more powers be devolved to the Scottish Parliament.

While many of these are set out in the Scotland Bill that is currently before Westminster, the financial mechanism that will underpin the transfer of responsibilities is being negotiated separately by the UK and Scottish Governments.

Known as the ‘fiscal framework’, it 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.

It will also 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.

Both governments insist they want to strike a deal before the middle of next month, ahead of elections to the Scottish parliament in May.

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