Scottish devolution: Smith Commission report as it happened

Latest updates as proposals for new devolution to Scotland unveiled in Edinburgh

14.00 We’re going to wrap it there for today. Thank you for following.

13.30 Labour are concerned about regional airports in the north of England, and tax competition from lower levels of air passenger duty in Scotland. Is a tax race brewing?

Balls and Umunna have written to their Tory counterparts:

All of our parties support the Smith Commission conclusions and its principle that implementation should “not cause detriment to the UK as a whole nor to any of its constituent parts.” and ”cause neither the UK Government nor the Scottish Government to gain or lose financially simply as a consequence of devolving a specific power”

It is important that, in implementing the Smith recommendations in relation to Air Passenger Duty, this principle is upheld. This means ensuring that English Regional Airports are not disadvantaged.

English Regional airports cannot be faced with continuing uncertainty and risk through not knowing whether they will be significantly disadvantaged should a future Scottish Government introduce changes to Air Passenger Duty.

It is therefore imperative that the UK Treasury leads work across Government – and working with the Scottish Government – on a mechanism to ensure that English airports, particularly in the North of England, are not disadvantaged.

12.40 Downing Street have left question marks over what English votes for English laws really mean – and whether MPs from north of the border will be barred from voting on income tax bands and rates in the rest of the UK.

Details of the proposals are due to be set out by Mr Cameron before Christmas but the PM’s official spokesman said that the principle would be that the differentiation would apply to “all financial matters”.

Some elements of income tax would remain UK-wide, he pointed out, such as the allowance thresholds and how income was defined – and there would “continue to be a UK Budget”.

Asked specifically if MPs from north of the border would be excluded from voting, for example, on a change to income tax bands or rates in the rest of the UK, he declined to give detail of specific plans.

But he added: “Where you see significant areas of devolution, there is an important principle there in terms of English votes for English laws.

“I think the Prime Minister was pretty clear when he was in front of the select committee that he thinks he is going to bring forward proposals which are going to reflect that because that is the fair thing to do.”

Ed Miliband insists the settlement means Scottish MPs WILL vote on English budgets.

“The system of tax reliefs remains at a UK level, other aspects of the income tax system remain at the UK level.

“I think it’s part of the integrity of the UK that it continues to be the place that Scottish MPs vote on the budget. The Smith Commission itself recognises that in their report.

12.20 Elsewhere in the world, the price of brent crude has fallen to the lowest level in four years as Opec meets.

The Yes campaign’s finances were built on assumptions of oil at $113 a barrel. It’s now $75.75.

Under the Smith Commission, oil revenues will not be devolved – to SNP chagrin.

12.00 Update on borrowing: the PM was asked about this at the Liason Committee last week. He said borrowing would be capped at £2.2 billion and the UK is the lender of last resort. Read the transcript here.

Chi Onwurah, a Labour MP for Newcastle, asks about air passenger duty and the competitionfrom Scottish airports v northern English airports. Carmichael says it is for her and her city to propose the new powers they want.

Asked about English votes for English laws, he says: “I am confident that England will get what England wants, when England decides what it is it wants.”

11.40 Alistair Carmichael is asked if the UK Treasury will have to undewrite Scotland’s extra borrowing. He says Scotland will be liable for any debts it incurs under its new borrowing powers.

How that works in theory and practice is not clear: the UK remains responsible for overall fiscal framework.

He is asked whether Scottish control of income tax could trigger a low-tax race between England and Scotland.

“That is indeed one of the possible consequences,” says Carmichael.

Pete Wishart (SNP, Perth) says the package is disappointing. Carmichael says Wishart just wants independence.

“He lost. It’s about time he and is party came to terms with that loss. For him and his party to try and get independence by the back door does not respect the views of the Scottish people as expressed in the referendum. He has a duty to speak for the 60.91 per cent of his own constituents who rejected independence.”

Philip Davies asks “how those people who wanted the status quo should have voted in the independence referendum.” Carmichael says it was clear that a “vote for no was not a vote for no change”.

11.15 In the Commons, MPS are discussing the Smith Commission

Alistair Carmichael, the Scottish Secretary, says the measures “will be implemented without hesitation, without reservation and without equivocation”. He says “work starts today” to turn recommendations into draft legislation by Burns Night in January.

“For the first time over 50 percent of the money spent by the Scot Government will be raised by the Scot Government,” he says.

Alistair Darling, the former Chancellor, says devolution must do nothing “that undermines the integrity of the United Kingdom.

Stewart Hosie, the SNP Deputy Leader, says the SNP “won’t stand in the way” of the package but says it has not turned the Scottish Parliament into a “powerhouse”, and says the Scottish voters have been let down.

Carmichael chides his tone and says he should have failed to welcome the deal. “He predictably and depressingly seeks to claim this is not the fulfilled.” He waves a copy of today’s Record, which declares: “The Vow Delivered”. He demands the SNP respects the outcome of the referendum for a generation.

Carmichael, a Lib Dem, says Britain needs federalism, but holds back from saying that’s what the report achieves.

Redwood demands English MPs take control over English taxes. Carmichael dodges the question a little, and says that the Smith Commission rules that income tax is a UK-wide tax. MPs shout “Rubbish!”.