For better or worse? Mixed views on Autumn Statement

Predictably mixed opinions over the Westminster government’s Autumn Statement yesterday. Scottish Secretary Alistair Carmichael says Scotland is strengthened by the announcements but the Holyrood government says Scotland’s poor will pay the price for further austerity measures.

The Scottish Government will benefit from additional funding of £213 million through to 2015-16 as a result of spending decisions taken by the UK Government at this Autumn Statement, bringing the total amount of additional spending power granted to the Scottish Government since 2010 to over £2.3 billion.

That’s good news for Scotland, said Scottish Secretary Alistair Carmichael MP. Speaking after the Chancellor’s announcement, Mr Carmichael said: “This Autumn Statement sets out the next steps in the UK Government’s long term economic plan to secure a sustained recovery and a more resilient economy. By backing businesses, helping more people into work and supporting families in communities across the country Scotland is benefitting from the action we are taking to help our economy grow.

“These measures will give the Scottish Government an extra £213 million of spending, taking the total of additional spending power to over £2.3 billion since we came to office. This means they can crack on and spend more money such as on funding for the NHS, more childcare places or more funding for schools or colleges.

“Scotland chose to retain a shared currency, pensions, single market and the economic stability and security that comes from being part of the UK. With more funding provided to the Scottish Government today and more powers and great responsibility for the Scottish Parliament on the way, Scotland is strengthened by today’s Autumn Statement.”

Not so, according to Holyrood’s Finance Secretary John Swinney. The Deputy First Minister said today that Scotland is continuing to pay the price of UK Government’s austerity agenda .

In his autumn budget address Chancellor George Osborne admitted to the House of Commons that the Government had missed key targets on economic recovery. In the last substantial finance statement before next year’s General Election, the Chancellor confirmed that his forecasts on deficit reduction were off target, with borrowing higher and tax revenues lower than expected. More austerity, to ensure future prosperity, was the government message.

Finance Secretary John Swinney warned that the Chancellor’s decisions were continuing to hit the poorest in our society hardest with the Treasury confirming that those in the lowest 20% will face some of the hardest impacts of the austerity plan.

The majority of spending announcements simply recycle existing money meaning the Scottish Government will receive around £200m in Barnett consequentials. This makes up only 8% of the £2.7bn of real terms cuts that have been removed from Scotland’s budget since 2010 and have taken 25% of Scotland’s capital budget.

Commenting on the Autumn budget statement, John Swinney said: “The Scottish Government is focused on securing economic growth, tackling inequality and protecting our public services. The Chancellor’s budget fails to pass the test on all of these measures.

“Today’s budget shows the failure of the UK Government’s austerity policy and it is clear that we in Scotland are paying the price. In 2010 the Chancellor embarked on his austerity programme and instead of putting the finances on a sound footing we are seeing borrowing this year of over £50bn higher than expected, lower tax revenues and austerity extended by atleast a further two years.

“Just last week I wrote to the UK Government to ask them to use the Autumn statement as an opportunity to ensure that the benefits of economic growth are not only sustained but are made accessible to all. The Chancellor has not listened.

“The lowest earning households in Scotland will be among the hardest hit by the UK Government cuts.

“And while the Chancellor gives Northern Ireland the power to cut corporation tax his government is continuing to block the job creating powers Scotland needs.

Commenting on the Barnett consequentials which will come to Scotland as a result of today’s announcements, the Finance Secretary said: “Additional spending for Scotland is always welcome but the consequentials of around £200m we have received today cannot compensate for the £2.7bn of real terms cuts we have faced since 2010. And with a further £25bn of cuts in the future the Westminster Government is locking Scotland into austerity against our wishes.

“The £125m of consequentials we have received from frontline NHS spending in England will be passed to Scotland’s NHS as they have been in every year of this parliament.”

Politicians call for action to save Leith-based Pelamis

Wave goodbye? Local politicians say Pelamis must be saved

Edinburgh Green and Labour parliamentarians are calling for their respective governments to support a troubled local technology company before foreign rivals step in.

Green MSP Alison Johnstone has urged the Scottish Government to intervene to secure the future of wave technology firm Pelamis, which entered administration last week.

Questioning the Energy Minister at Holyrood yesterday,she said there was a real danger that Scotland would lose a global leader in the development of the technology to an overseas buyer, and end up importing wave technology in future years.

Pelamis employs 56 staff, with most based in Leith.

Alison Johnstone, Lothian MSP said: “Pelamis has been a global pioneer in wave technology and a leading Edinburgh company, which we cannot afford to lose. We hear so much about Scotland’s renewable energy potential but we will not reap the rewards without support to turn research into commercially-ready technology.

“Pelamis is a highly respected company which has built up a huge amount of expertise. I urge the Scottish Government to use every possible means to support this company and its employees at this uncertain time.”

North and Leith MP Mark Lazarowicz has also expressed concern and is urging Wstminster and Holyrood to work together to rescue the company. Speaking today, the Labour MP said: “The UK is currently the world leader in marine energy and the expertise of Pelamis Wave Power – based in Leith – has won it grants and awards from the UK and Scottish Governments: I want to see them act now to put together a rescue package.

“I have raised the urgent need to try and save Pelamis in a meeting with the Secretary of State for Scotland and contacted the UK Energy and Climate Change Secretary urging him him to act.

“Scotland and the UK have Europe’s greatest wave resources, but we run a real risk that if wave power technology isn’t given the long term guarantees of support that it needs, other countries will become the leaders in the technology.”

He also raised his concerns in a debate on fracking in Parliament where he referred specifically to the situation affecting Pelamis, and said after the debate: “Supporting pioneering renewable energy technology is what governments should do, instead of giving generous tax breaks to fracking.”

Pelamis Wave Power has been awarded grants for development of its pioneering technology by the UK Department for Energy and Climate Change and earlier this year its Chief Executive, Richard Yemm, was awarded the Scottish Government’s Saltire Prize for marine renewable energy.

Fracking hell: politicians speak out

Johnstone: ‘I’d urge communities to oppose such developments’

Alison Johnstone, Green MSP for Lothian and a member of Holyrood’s economy and energy committee, is urging communities around the Forth to oppose plans for underground coal gasification.

Drilling firm Cluff, one of a number of firms with licences to extract gas from coal seams around the Scottish coast, says it intends to apply for planning permission to develop drilling operations under the Firth of Forth.

Gasification involves drilling into coal seams, igniting them and capturing the resulting gas from a borehole.

Even with as-yet unproven carbon capture and storage technology, coal gasification would still emit more greenhouse gases than renewables.

Alison Johnstone MSP said: “Just a week after the IPCC warned that we need to urgently phase out fossil fuels, we have a company preparing to drill for yet more. In recent months I’ve been hearing from local people rightly alarmed at the prospect of unconventional gas drilling in their area, and I’d urge communities to oppose such developments.

“The local authorities and the environmental regulator Sepa must take into account the climate impact from this proposal. It also poses an economic risk by extracting fossil fuel we simply can’t afford to burn, and diverting attention away from the renewables sector that is steadily growing the long-term, well-paid jobs we all want to see.”

Mark Lazarowicz MP has urged the UK Government to devolve the responsibility for licencing fracking in Scotland to the Scottish Government. He was speaking at Energy and Climate Change questions in the House of Commons.

The North & Leith MP said: “This is an issue that many people feel strongly about, and I do not see any reasons why the power to grant licences should not be transferred from the Department of Energy and Climate Change to the Scottish Government.”

“Labour has already called for much tighter safeguards for licencing: companies must be forced to disclose the chemicals used in fracking and tests must take place for 12 months before the final go-ahead to find any trace of water contamination.

“Many issues relating to fracking are already devolved, including planning and environmental regulation, consent for electricity generation and transmission are all devolved. It makes sense for all aspects of the control of fracking to be devolved.”

Currently, companies must first apply for a licence from the Department for Energy and Climate Change (DECC) to explore for shale gas and another to then actually drill and extract it.

The company also needs a licence from the Scottish Environment Protection Agency (SEPA), who regulate the way that the development will affect the local environment, in particular discharges of fracking fluid to local water sources.

Companies must also apply to the local authority for planning permission to deal with matters covered by planning law and the Scottish Parliament already has full authority over that, so Mr Lazarowicz argues that it makes sense for overall control of licencing to be devolved too.

TTIPing point

Greens urge First Minister to get tough on TTIP

Alison Johnstone, Green MSP for Lothian and a member of Holyrood’s economy committee (above), is urging the First Minister to oppose TTIP, the controversial EU-US trade deal.

Writing on behalf of the five-strong Green-Independent group of MSPs, Ms Johnstone calls on Alex Salmond to press the case against a power grab by big business that undermines democratic decision-making.

The full text of the letter can be seen online at greenmsps.org. It is supported by Alison’s Green colleague Patrick Harvie, along with independent MSPs John Finnie, Jean Urquhart and John Wilson.

Alison Johnstone MSP said: “”TTIP is a power grab by private corporations which threatens the NHS. Although Scottish ministers have said they oppose the inclusion of health services in TTIP the negotiations have not yet provided any clear protections, and I urge the First Minister to press the case.

“There’s huge public concern at the offshore corporate courts being proposed. These would enable corporations to sue governments for passing laws which may be in the public interest but affect a company’s profits, an outrageous suggestion.

“We could also see watering down of European protections from the likes of GM foods and beef produced with growth hormones, an issue causing real concern for Scotland’s farmers.

“I hope the Scottish Government will write again to the UK Government stating opposition to TTIP. There is mounting public concern that cannot be ignored.”

One month on: delivering ‘The Vow’

Scottish Secretary Alistair Carmichael says pledge to devolve further powers to Scottish Parliament is on track

One month on from Scotland’s decision to remain part of the UK, Scottish Secretary Alistair Carmichael has said the UK Government has hit the ground running on its pledge to devolve further powers to the Scottish Parliament.

He called on First Minister-in-waiting Nicola Sturgeon to adopt a similar approach and show real leadership in making things happen, and said it was vital that people in Scotland accept the result of the fair, legal and decisive referendum and move on in the best interests of all of Scotland.

On 18 September 2,001,926 people in Scotland voted for Scotland to stay in the UK, nearly 400,000 more than voted for the independence option. The turnout, at almost 85%, was the largest in UK election history.

Mr Carmichael said: “Nicola Sturgeon will take the reins at a time where most Scots are moving on with their lives after the long and passionate referendum campaign. We have hit the ground running and are already working hard to deliver the further devolution which we promised.

“During the referendum campaign we set out a timetable for the devolution of further powers and we’re not only meeting it, we’re beating it.

“I would call on Nicola Sturgeon to show genuine leadership and accept the result. There have already been cries of reneging on the more powers vow even though the Smith Commission hasn’t even proposed anything yet. The betrayal bandwagon is already getting dusted down. This is simply not good enough. The Scottish people have made their democratic decision and it must be respected.

“I appreciate the emotional intensity of the campaign but the UK Government respected the victory of the nationalists in 2011, recognised the will of the Scottish people and took measures to devolve the power to hold the referendum. Both sides signed the Edinburgh Agreement in good faith and it is that good faith which we need to see from the new First Minister.

“The referendum gave us a decisive result. This was the most democratic decision we have ever made in Scotland. More than 3.6 million people voted. One question was put to the electorate and the overwhelming majority of people in Scotland answered by saying they want to remain part of the United Kingdom.

“We are now working to build a stronger Scottish Parliament. Calling for a second referendum and reflecting on what could have been is entirely inappropriate. The Scottish Government wanted to divide the United Kingdom but if they carry on as they have for the past month then they risk dividing Scotland.”

Scotland’s deputy first minister Nicola Sturgeon said: “The Scottish government intends to play a full and constructive part in the process to deliver substantial new powers for the Scottish Parliament.

“This will include working to ensure that the outcome meets the high expectations of the people of Scotland as expressed in the referendum, given the various promises of ‘devo max’, ‘near federalism’ and ‘home rule’ which were made.”

She said that the UK parties were falling out over more powers for Holyrood and introducing Englishvotes for English laws’ at Westminster.

“In the month since the referendum, we have produced our submission to the Smith Commission, continued our engagement with the people of Scotland on more powers and witnessed a phenomenal rise in SNP membership as more and more people realise that it is the SNP that delivers for Scotland. It’s time for the Westminster parties to show the same spirit of co-operation and compromise, to stop squabbling with each other and to join us in working for Scotland’s best interests instead of their own.”

Westminster WILL deliver, says Carmichael

The UK Government will deliver on its pledge to bring significant new powers to the Scottish Parliament as part of further devolution within the UK, Scottish Secretary Alistair Carmichael said yesterday.

It coincided with the publication of a UK Government Command Paper, a summary of the proposals set out by the 3 main Westminster political parties that have been put forward for further devolution.

Speaking ahead of giving a statement in the House of Commons, Mr Carmichael said: “The referendum result made clear the majority of people in Scotland want to see a strong devolved Parliament as part of the UK.

“We pledged further devolution and we will deliver on that promise. Today’s Command Paper sets out the detail of the political positions from the parties. The Smith Commission must now be left to carry out its work before Heads of Agreement are published at the end of November.

“This is the first time all of Scotland’s main political parties will be involved in a process exploring areas of further devolution. I welcome that as an important recognition we must work together to deliver the new powers people want to see for Scotland”.

The independent Smith Commission is convening cross-party talks to reach agreement on the proposals. Its terms of reference make clear the recommendations will deliver more financial, welfare and taxation powers to strengthen the Scottish Parliament within the UK.

The move comes just days after the Scottish Government’s budget used the powers devolved by the Scotland Act 2012 to set Scottish stamp duty and landfill tax rates, as well as extend government borrowing.

More information about the Smith Commission

Have your say on further financial devolution

The options for the further devolution of financial powers to Scotland are to be examined by the Scottish Parliament’s Finance Committee in a new inquiry launched last week – and the public are being asked to give their views.

Following the referendum, and the establishment of the Smith Commission, the Committee’s inquiry will look at what general principles should apply to the devolution of further financial powers and what those powers should be. The inquiry will also consider the impact of any further financial powers on the block grant.

During the course of the inquiry, the Committee will take evidence from a range of witnesses and is also asking people to submit their views on the options for financial devolution in Scotland.

Committee Convener, Kenneth Gibson MSP said: “Following the referendum, there is a debate about the further devolution of powers to Scotland. The Smith Commission is currently considering what further powers should be devolved to Scotland and key amongst these will be financial powers. It is only right that we contribute to this debate.

“Our inquiry will explore what powers should be devolved and the implications for Scotland’s funding. We want to hear a range of views about what this would mean for Scotland.”

The Committee is asking for views on a range of issues including:

• What general principles should apply to the devolution of further financial powers to the Scottish parliament?
• What further financial powers should be devolved to the Scottish Parliament and why?
• What further financial powers should not be devolved to the Scottish Parliament and why?
• To what extent could the Scottish Government be constrained in how it uses new tax powers given the interaction with fiscal decisions at a UK level?
• What are the implications of further fiscal devolution for the block grant?
• What are the implications of further financial powers for the role of Revenue Scotland?

The closing date for responses is Friday 14 November 2014.

All responses should be sent electronically to: finance@scottish.parliament.uk

More information on the Committee’s inquiry can be found on the Committee’s webpage:
http://www.scottish.parliament.uk/parliamentarybusiness/CurrentCommittees/29822.aspx

Homebuyers could be in for Swinney budget boost

A new tax to replace stamp duty could be a bonus for homebuyers when Finance Secretary John Swinney sets out the Draft Scottish Budget for 2015/16 today. He is expected to focus on polices which will help to make Scotland a more prosperous country, tackle inequality and protect public services.

Scotland’s economy has returned to pre-recession levels, but the Scottish government says today’s budget will be set against the context of Westminster cuts by around 10 per cent in real terms over five years and capital spending cuts of over 25 per cent.

The budget will also include proposed tax rates and publish tax receipts forecasts for the first time, ahead of the Land and Buildings Transaction Tax (LBTT) and Scottish Landfill Tax (SLfT) coming into force on April 1, 2015.

Speaking ahead of his statement – in which he will indicate that Scotland is in a new phase of economic and political debate – Mr Swinney said: “We have seen a strengthening of Scotland’s economic performance over the last two years and currently have record levels of employment.

“However, major challenges in the economy still remain, compounded by the fact the public finances are under such pressure by the UK austerity programme.

“This budget follows unprecedented levels of political engagement not only on Scotland’s constitutional future but the wider priorities of the people of Scotland.

“What will lie at the heart of the budget will be a determination to make Scotland a prosperous and fairer country where the benefits of economic growth are not only maintained but are shared by everyone.

“Many of these aspirations will be taken forward within the budget and also within the setting of tax rates. The Land and Buildings Transaction Tax is the first tax created by the Scottish Parliament since before the 1707 union.

“The budget is a major landmark in taking forward the Government’s programme and is also a historic opportunity to set new tax rates for Scotland.”

Don’t make Scotrail decision before new powers devolved: Lararowicz

Loal MP Mark Lazarowicz has backed a call by Scottish Labour MPs, MSPs and the RMT rail union for the retendering of the ScotRail and Caledonian sleeper franchises to be postponed in the light of the timetable for the devolution of new powers to the Scottish Parliament.

Former Prime Minister Gordon Brown has proposed that the new devolved powers should include further devolution of powers over rail transport.

The Government is to publish the proposals of each of the three main Westminster parties by 30 October and the Scottish people, civil society in Scotland and the Scottish Parliament will then be consulted on them, but a decision on the company to operate the Scotrail franchise is due to be announced this month with the franchise to start in April 2015 and to run for the next 10 years.

The North and Leith MP said: “The proposals for further devolution include new powers covering rail transport and in the light of that I am calling on the Scottish Government to postpone the retendering of the ScotRail and Caledonian sleeper franchises.

“That would mean that once the powers are devolved the Scottish Government will be free to decide whether it wishes to run rail services in the public sector rather than continuing with privatisation.

“The new powers should enable the Scottish people to make a real choice about the kind of society we are and, on rail as on other issues, the Scottish Government should not make that decision for us before we are able to.”

The timetable for the transfer of further powers to the Scottish Parliament can be found in the text of a Parliamentary Motion at

http://www.publications.parliament.uk/pa/cm201415/cmagenda/fb141013.htm

[Section B, no. 28]

Salmond to step down

First Minister Alex Salmond is to step down following defeat for the Yes Scotland campaign in the independence referendum.

Mr Salmond told party members: “I have has announced my intention to stand down as SNP Leader at the Party’s Annual Conference in November and then as First Minister when the SNP have elected the next Leader following a membership ballot. My statement to the nation, made a few moments ago at Bute House, is as follows:

“I am immensely proud of the campaign which Yes Scotland fought and of the 1.6 million voters who rallied to that cause by backing an independent Scotland.

“I am also proud of the 85 per cent turnout in the referendum and the remarkable response of all of the people of Scotland who participated in this great constitutional debate and the manner in which they conducted themselves.

“We now have the opportunity to hold Westminster’s feet to the fire on the “vow” that they have made to devolve further meaningful power to Scotland. This places Scotland in a very strong position.

“I spoke to the Prime Minister today and, although he reiterated his intention to proceed as he has outlined, he would not commit to a second reading vote by 27th March on a Scotland Bill. That was a clear promise laid out by Gordon Brown during the campaign. The Prime Minister says such a vote would be meaningless. I suspect he cannot guarantee the support of his party.

“But today the point is this. The real guardians of progress are not the politicians at Westminster, or even at Holyrood, but the energised activism of tens of thousands of people who I predict will refuse meekly to go back into the political shadows.

“For me right now , therefore there is a decision as to who is best placed to lead this process forward politically.

“I believe that in this new exciting situation, redolent with possibility, Party, Parliament and country would benefit from new leadership.

“Therefore I have told the National Secretary of the SNP that I will not accept nomination to be a candidate for leader at the Annual Conference in Perth on 13th-15th November.

“After the membership ballot I will stand down as First Minister to allow the new leader to be elected by due Parliamentary process.

“Until then I will continue to serve as First Minister. After that I will continue to offer to serve as Member of the Scottish Parliament for Aberdeenshire East.

“It has been the privilege of my life to serve Scotland as First Minister. But as I said often during the referendum campaign this is not about me or the SNP. It is much more important than that.

“The position is this. We lost the referendum vote but can still carry the political initiative. More importantly Scotland can still emerge as the real winner.”

Leaders comment on referendum result

Scotland’s First Minister Alex Salmond and Prime Minister David Cameron have commented on this morning’s referendum result. HM Queen Elizabeth II, Great Britain’s head of state, has also issued a message of support and Edinburgh’s council leader Andrew Burns gave the city’s perspective.

In a statement from Balmoral, HM The Queen said: “After many months of discussion, debate, and careful thought, we now know the outcome of the Referendum, and it is a result that all of us throughout the United Kingdom will respect.

“For many in Scotland and elsewhere today, there will be strong feelings and contrasting emotions – among family, friends and neighbours. That, of course, is the nature of the robust democratic tradition we enjoy in this country. But I have no doubt that these emotions will be tempered by an understanding of the feelings of others.

“Now, as we move forward, we should remember that despite the range of views that have been expressed, we have in common an enduring love of Scotland, which is one of the things that helps to unite us all. Knowing the people of Scotland as I do, I have no doubt that Scots, like others throughout the United Kingdom, are able to express strongly-held opinions before coming together again in a spirit of mutual respect and support, to work constructively for the future of Scotland and indeed all parts of this country.

“My family and I will do all we can to help and support you in this important task.”

Earlier today, speaking at Dynamic Earth before the final count had been declared, First Minister Alex Salmond said: “Thank you Scotland for 1.6 million votes for Scottish independence. Our friends in the Highlands of Scotland are still to speak, so the final results aren’t in but we know that there is going to be a majority for the No campaign.

“It’s important to say that our referendum was an agreed and consented process and Scotland has by majority decided not at this stage to become an independent country. I accept that verdict of the people and I call on all of Scotland to follow suit in accepting the democratic verdict of the people of Scotland.

“But I think all of us in this campaign say that that 45 per cent, that 1.6 million votes, is a substantial vote for Scottish independence and the future of this country. Let us say something which I hope that unites all campaigns and all Scots. I think the process by which we have made our decision as a nation reflects enormous credit upon Scotland.

“A turnout of 86 per cent is one of the highest in the democratic world for any election or any referendum in history. This has been a triumph for the democratic process and for participation in politics.

“For example, the initiative by which 16 and 17 year olds were able to vote has proved to be a resounding success. I suspect that no one will ever again dispute their right and ability to participate fully and responsibly in democratic elections.

“So we now face the consequences of Scotland’s democratic decision. Firstly, Clause 30 of the Edinburgh Agreement is now in operation. On behalf of the Scottish Government I accept the results and I pledge to work constructively in the interest of Scotland and the rest of the United Kingdom.

“Secondly, the unionist parties made vows late in the campaign to devolve more powers to Scotland. Scotland will expect these to be honoured in rapid course. Just as a reminder, we have been promised a second reading of a Scotland Bill by the 27th of March next year and not just the 1.6 million Scots who voted for independence will demand that that timetable is followed but all Scots who participated in this referendum will demand that that timetable is followed.

“I’ll be speaking to the Prime Minister shortly after this statement but can I return thirdly to the empowerment of so many Scots entering the political process for the very first time. It is something that is so valuable it has to be cherished, preserved and built upon.

“I’ve said before many times in this campaign that the most moving things I saw was the queue of people in Dundee two or three weeks ago patiently waiting to register to vote. Most of them for the first time ever deciding to participate in the democratic process. Today in Inverurie I met a 61 year old lady just coming out of the polling station who had never voted before in her life. I met a soldier, a former soldier, who hadn’t voted since he left the army some 24 years ago. And these people were inspired to enter democratic politics by the thought that they could make a difference in building something better for the country.

“These are people who all of us as we campaigned have met and been inspired by. And all of us are a part of all of that experience that we have encountered. Whatever else we can say about this referendum campaign, we have touched sections of the community who’ve never before been touched by politics. These sections of the community have touched us and touched the political process. I don’t think that will ever be allowed to go back to business as usual in politics again.

“So friends, sometimes it’s best to reflect where we are on a journey. 45 per cent, 1.6 million of our fellow citizens voting for independence, I don’t think that any of us whenever we entered politics would have thought such a thing to be either credible or possible.

“Today of all days as we bring Scotland together let us not dwell on the distance we have fallen short. Let us dwell on the distance we have travelled and have confidence that the movement is so broad in Scotland that it will take this nation forward and we shall go forward as one nation. Thank you very much.”

“The people of Scotland have spoken” said Prime Minister David Cameron following the outcome of the Scottish independence referendum.

Mr Cameron said: “The people of Scotland have spoken. It is a clear result. They have kept our country of 4 nations together. Like millions of other people, I am delighted. As I said during the campaign, it would have broken my heart to see our United Kingdom come to an end.

“And I know that sentiment was shared by people, not just across our country, but also around the world because of what we’ve achieved together in the past and what we can do together in the future.

“So now it is time for our United Kingdom to come together, and to move forward. A vital part of that will be a balanced settlement – fair to people in Scotland and importantly to everyone in England, Wales and Northern Ireland as well.

“Let us first remember why we had this debate – and why it was right to do so.

“The Scottish National Party (SNP) was elected in Scotland in 2011 and promised a referendum on independence. We could have blocked that; we could have put it off, but just as with other big issues, it was right to take – not duck – the big decision.

“I am a passionate believer in our United Kingdom – I wanted more than anything for our United Kingdom to stay together.

But I am also a democrat. And it was right that we respected the SNP’s majority in Holyrood and gave the Scottish people their right to have their say.

“Let us also remember why it was right to ask the definitive question, Yes or No. Because now the debate has been settled for a generation or as Alex Salmond has said, perhaps for a lifetime.

“So there can be no disputes, no re-runs – we have heard the settled will of the Scottish people.

Scotland voted for a stronger Scottish Parliament backed by the strength and security of the United Kingdom and I want to congratulate the No campaign for that – for showing people that our nations really are better together.

I also want to pay tribute to Yes Scotland for a well-fought campaign and to say to all those who did vote for independence: “we hear you”.

We now have a chance – a great opportunity – to change the way the British people are governed, and change it for the better.

Political leaders on all sides of the debate now bear a heavy responsibility to come together and work constructively to advance the interests of people in Scotland, as well as those in England, Wales and Northern Ireland, for each and every citizen of our United Kingdom.

To those in Scotland sceptical of the constitutional promises made, let me say this we have delivered on devolution under this government, and we will do so again in the next Parliament.

The 3 pro-union parties have made commitments, clear commitments, on further powers for the Scottish Parliament. We will ensure that they are honoured in full.

And I can announce today that Lord Smith of Kelvin – who so successfully led Glasgow’s Commonwealth Games – has agreed to oversee the process to take forward the devolution commitments, with powers over tax, spending and welfare all agreed by November and draft legislation published by January.

Just as the people of Scotland will have more power over their affairs, so it follows that the people of England, Wales and Northern Ireland must have a bigger say over theirs. The rights of these voters need to be respected, preserved and enhanced as well.

It is absolutely right that a new and fair settlement for Scotland should be accompanied by a new and fair settlement that applies to all parts of our United Kingdom. In Wales, there are proposals to give the Welsh government and Assembly more powers. And I want Wales to be at the heart of the debate on how to make our United Kingdom work for all our nations. In Northern Ireland, we must work to ensure that the devolved institutions function effectively.

I have long believed that a crucial part missing from this national discussion is England. We have heard the voice of Scotland – and now the millions of voices of England must also be heard. The question of English votes for English laws – the so-called West Lothian question – requires a decisive answer.

So, just as Scotland will vote separately in the Scottish Parliament on their issues of tax, spending and welfare, so too England, as well as Wales and Northern Ireland, should be able to vote on these issues and all this must take place in tandem with, and at the same pace as, the settlement for Scotland.

I hope that is going to take place on a cross-party basis. I have asked William Hague to draw up these plans. We will set up a Cabinet Committee right away and proposals will also be ready to the same timetable. I hope the Labour Party and other parties will contribute.

It is also important we have wider civic engagement about to improve governance in our United Kingdom, including how to empower our great cities. And we will say more about this in the coming days.

“This referendum has been hard fought. It has stirred strong passions. It has electrified politics in Scotland, and caught the imagination of people across the whole of our United Kingdom.

“It will be remembered as a powerful demonstration of the strength and vitality of our ancient democracy. Record numbers registered to vote and record numbers cast their vote. We can all be proud of that. It has reminded us how fortunate we are that we are able to settle these vital issues at the ballot box, peacefully and calmly.

“Now we must look forward, and turn this into the moment when everyone – whichever way they voted – comes together to build that better, brighter future for our entire United Kingdom.”

City of Edinburgh Council leader Councillor Andrew Burns said:

“The dust is still settling following the outcome of the Scottish Independence Referendum, announced earlier today at the Royal Highland Centre, Ingliston.

“The media attention on Scotland, and on Edinburgh in particular, has been unparalleled and I am delighted that, as ever, our city shone. Credit is due to the many hundreds of council, and other, staff who played their part in making this possible – both at Ingliston and elsewhere across the city.

“Of course, whatever the result, Edinburgh was still going to remain Scotland’s capital and a wonderful place to live and work – and, crucially, to do business.

“We are in the unique position here in that we have a Labour-SNP coalition running the city – something that will continue at least until the next local council elections in 2017.

“We have successfully kept constitutional debate out of the Chambers for the first half of our term and there is absolutely no reason at all why that can’t continue.

“I can assure you that our focus will remain on running the city in the fairest and most efficient way possible and on keeping to the pledges set out in our Contract with the Capital two-and-a-half years ago.”

What’s happens next?

Following yesterday’s referendum Scotland will remain as part of the United Kingdom, with its own Parliament. The UK and Scottish governments will continue to make the changes to the powers of the Scottish Parliament that were agreed in the Scotland Act 2012.

Prime Minister David Cameron today announced that Lord Smith of Kelvin has agreed to oversee the process to take forward the devolution commitments on further powers for the Scottish Parliament by the three pro-union parties.

What are the next powers to be devolved?

As laid out in the Scotland Act 2012, further devolution of financial powers to the Scottish Parliament will come into effect from April 2015 and April 2016. The next powers to be devolved are:

1. Stamp duty land tax and landfill tax
From April 2015, Scottish government legislation will replace stamp duty land tax and landfill tax in Scotland with the Land and Buildings Transaction Tax and Scottish Landfill Tax Revenue. Scotland will become responsible for the collection of the new taxes.

2. Extending borrowing powers
From April 2015, current borrowing powers of up to £500 million will be extended and a new Scottish cash reserve will be created to help manage the new tax receipts.

3. New capital borrowing power
From April 2015, there will be a new £2.2 billion capital borrowing power for the Scottish Parliament, with a limited version of the power in place from April 2013 to allow the Scottish government to fund £100 million of pre-payments for the Forth Road Crossing.

4. Scottish rate of income tax
A new Scottish rate of income tax will come into force in April 2016. This means the Scottish Parliament will set a new Scottish rate – with no upper or lower limit – which will apply equally to all of the reduced main UK income tax rates.

And the extra powers promised by the Westminster leaders in last week’s ‘vow’? Discussions are under way …