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Summary

  1. The Smith Commission recommends the full control over income tax rates and bands be devolved to Holyrood
  2. The commission, set up after the "No" vote in the independence referendum, reached an agreement at its final meeting
  3. It says a share of VAT should be assigned to the Scottish Parliament, and that Air Passenger Duty should be fully devolved
  4. It also recommends Holyrood be given powers to allow 16 and 17-year-olds to vote in Scottish elections

Live Reporting

By Graham Fraser, Louise Sayers, Paul McLaren and Rachael Connors

All times stated are UK

Get involved

Bye for now

Rachael Connors

BBC Scotland News

That's all from the Scotland Live team today. Join us again tomorrow from 08:00 for the latest news and sport as it happens around the country.

Some Tory MPs object

David Porter

Westminster correspondent

The BBC's Westminster correspondent David Porter told

BBC Radio Scotland's Newsdrive programme not all MPs are pleased with Lord Smith's proposals.

house of commons
PA

He said, overall, most MPs feel that following the Scottish independence referendum it is right for further devolution.

But many Conservative MPs have highlighted there are regions of England that would like devolution and raised the West Lothian question.

Sturgeon's speech

The first minister paid tribute to Lord Smith and welcomed the findings on new powers for the Scottish parliament.

Nicola Sturgeon
BBC

But Nicola Sturgeon went on to voice concerns that the powers do not equate to home rule but continued Westminster rule and said: "I think the package is disappointing."

Watch her Holyrood speech here.

Your views

newsonlinescotland@bbc.co.uk

Iain, Crieff (in response to David Munro): The "Better Together" alliance set forth a manifesto to be delivered in the event of a "No" vote. They explicitly sought a mandate for the "Vow" two days before polling. They did that. They got their mandate. They haven't delivered.

Alyson, Aberdeenshire: The Smith Commission recommendations are a giant step towards independence.

Joe: The only powers the SNP will be happy with is independence, their stance will always be that the Smith report doesn't go far enough - all very predictable.

Barney, Paisley: I and many others didn't vote No to get more powers. Not what the referendum was for or about and the Smith Commission is symptomatic of the utter disregard of the political elite for the expressed wishes of the majority. Shameful.

SNP 'must keep their promise'

Scottish Labour has called on the SNP to "keep their promise to the people of Scotland".

Labour MSP James Kelly
(C) British Broadcasting Corporation

The party's infrastructure spokesman James Kelly MSP said: "The Scottish Parliament will be more powerful than almost any other devolved administration in the world, with responsibility for raising over 60% of the money it will spend.

"We must realise, however, that the Scottish Parliament has powers to tackle poverty and grow our economy now. We could ban rip-off rent rises and extend the living wage to more workers on low pay. It is disappointing that the Programme for Government has not delivered on this.

"The promise of more powers has been delivered. It has been exceeded. It is now time for the SNP to deliver on their promise to pursue social justice for Scotland."

Miliband: 'We have listened'

The Labour leader, Ed Miliband, has said plans announced to grant new powers to the Scottish parliament represent the fulfilment of the promise made to the Scottish people.

ed miliband
PA

Mr Miliband said: "We think it's right to give more powers to the Scottish parliament. We said that during the referendum campaign. We vowed to the people of Scotland that we would do that - including on income tax.

"I think the task now is to change the way we are governed more generally. Not just in Scotland but in England and Wales as well, but I think it's the right thing to do.

"We've listened to people, we've listened to the people of Scotland just like we're listening to the people of England and Wales about them wanting more power over their own lives."

Lord Smith: It's a good deal

Lord Smith says the deal on further powers for the Scottish Parliament is "a good deal", especially as all five main parties in Scotland agreed to it.

Lord Smith
BBC

The chair of the Smith Commission, tasked with delivering further devolved powers to Holyrood, told BBC Scotland's political editor Brian Taylor that the agreement was historic and said: "I think it's a good deal and the important thing is, everybody signed."

Watch the full interview here.

'Herding cats'

The Campaign for Scottish Home Rule told
BBC Radio Scotland's Newsdrive programme the Smith Commission's proposals are a "good start in the right direction" but fall short of home rule.

Steering group chairman Ben Thomson said: "It must have been like herding cats to get five different political powers to agree on this compromise of giving up some more powers. But that's exactly what it is; it is a compromise of offering some more powers.

Campaign for Scottish home rule
BBC
The campaign has support from political parties, business and civic Scotland

"It is not home rule where Scotland gets the necessary levers for tax and welfare, to handle things which Scotland is responsible for, like the alleviation of poverty or getting people back in to jobs."

Mr Thomson said the plans fall short in two areas in welfare and tax . He said: "Westminster is responsible for about £14.4bn worth of pensions in Scotland, this has transferred about £2.5bn to Scotland.

"In terms of taxes, it's about 38% of what Scotland spent is now in Scotland's hands to raise in tax."

Your Views

Email: newsonlinescotland@bbc.co.uk

David Munro: No one has was given a mandate to propose new powers to appease the YeSNP mob. The ballot paper asked a very simple question, which was answered clearly by the moderate majority who voted NO! This will only further fragment our society and create more divisions that have been created by the SNP! Division - Salmond's legacy!

Your reaction

Text 80295

Tim, Largs: No power to stop benefit sanctions, one of the biggest causes of rise in food banks. Overall Smith falls well short of Brown's referendum vow and has yet to get through Westminster Parliament.

Catherine: Feel sad about all this. I didn't vote No to get more powers or have income tax increased. Feel that Scotland is drifting away from the rest of the UK and the sad thing is I feel that those who live south of the border don't really care anymore. Tragic.

Alan, Cupar: Darling and Brown promised 'home rule' and 'as close to federalism as you can get'...the Smith Commission has fallen a long way short of that...and the UK parliament still has to vote on the proposals!

Islands back Crown Estate switch

The leaders of Scotland's three islands councils have welcome plans to transfer the Crown Estate's current responsibility for the foreshore and seabed to the Scottish parliament.

shtland isles
john dally

Orkney Islands Council convener Steven Heddle said: "Devolution of the Crown Estate's assets will give us the ability to ensure development in our waters is sustainable and delivers the maximum benefits for our communities."

Angus Campbell, leader of Comhairle nan Eilean Siar, said: "The Comhairle has long made the case that Crown Estate revenues should be retained in Scotland and that local communities should be the beneficiaries of income derived from seabed and foreshore developments."

Gary Robinson, leader of Shetland Islands Council, backed the transfer of Air Passenger Duty and added: "Further control by the Scottish Parliament over home energy efficiency schemes will reduce the scale of fuel poverty in our islands."

Iain Gray: 'A transformational package'

Iain Gray MSP, who represented the Scottish Labour party on the Smith Commision, told BBC Radio Scotland's

Newsdrive programme: "This is the vow delivered, it's the promise kept and in many ways it goes much further than that."

He said, "It is a transformational package of powers over tax and welfare and really I think any government, any politician seeing these powers coming to them should be excited about the possibilities, to give them the powers to do what we're all in politics to do - to make Scotland prosper, help the vulnerable in society."

Iain Gray
BBC

Mr Gray criticised the SNP's response to the report and said: "The people of Scotland want the government to tell them what they can do, rather than constantly telling us what they can't do."

Law Society: 'Major new powers'

President of the Law Society, Alistair Morris, said the proposals offered by the Smith Commission offer Scotland "a radically enhanced constitutional settlement" with "major new powers" over the money which is raised directly by the Scottish Government.

Judges
Judiciary of Scotland
The Law Society welcomes the Smith Commission proposals

"We are particularly pleased to see that reserved tribunals, such as employment tribunals, are to be devolved. This will undoubtedly benefit those seeking recourse through the administrative justice system."

The Law Society also said it welcomes proposals for Scottish ministers to be fully involved in agreeing the UK position in EU negotiations relating to devolved policy matters.

CPAG: 'Real opportunity'

The Child Poverty Action Group in Scotland responded to the Commission's report by saying new powers must be used to prevent child poverty.

The Director of CPAG in Scotland, John Dickie, said: "Powers over disability benefits and the ability to create and top up wider benefits create real opportunities to ensure financial support for families keeps pace with the actual cost of living.

Children in Glasgow
Getty Images

"Nevertheless key levers for tackling poverty, including the national minimum wage, child benefit and wider economic and fiscal powers, remain at Westminster."

Mr Dickie welcomed specific recommendations that the Scottish government will be given administrative powers over Universal Credit payment options and the power to vary the housing costs element of the new UK benefit.

Fracking

WWF Scotland is calling on ministers to utilise new powers to stop fracking and other unconventional gas developments in Scotland.

Lump of shale
BBC
Hydraulic fracturing, or fracking, is a technique designed to recover gas and oil from shale rock

Director Lang Banks said: "We call on the Scottish government to make use of its new powers to protect communities and our climate by keeping these fossil fuels in the ground and unburned."

Mr Banks also warned that Air Passenger Duty is currently the only tax on the air transport industry, and "any subsequent changes must reflect the significant amount of our emissions that come from flying."

APD 'choking' Scots airline industry

Inglis Lyon, Managing Director of Highlands and Islands Airports Limited (HIAL) welcomes the Smith Commission's proposals to devolve Air Passenger Duty to Scotland.

He said :"Although flights departing from the Highlands and Islands are exempt from APD, the tax does apply to cross border flights into Inverness, which account for 87% of its passenger traffic, and to arriving and departing flights at Dundee.

Inverness Airport
Other

"APD also applies to flights from Aberdeen, Edinburgh and Glasgow into the Highlands and Islands. The impact of this tax is therefore felt right across regional Scotland."

Mr Lyon continued: "I have no doubt that APD is a barrier for business and tourism in Scotland, and this is evidenced by detailed research which confirms that APD is choking the recovery of the airline industry in Scotland.

"I believe it is right that decisions on how, and indeed whether, to apply such a tax should be made here in Scotland."

The small print

Stephen Daisley, political journalist at STV News,

tweets: Lighthouses! Road signs! Royal fishing! Eight curious new powers buried in the #SmithCommission small print
http://bit.ly/1uM08ia

Findlay: 'Make it work'

Scottish Labour leadership hopeful Neil Findlay called on all parties to "accept the Smith findings and work at making them law".

Neil Findlay
BBC

Mr Findlay said: "But more important than that is being aware that it's not the devolution of powers that represents progress, it is using those powers to change people's lives."

The MSP for Lothian said, if elected leader, his plans would include building 50,000 houses for social rent, moving people from a minimum to a living wage, expanding childcare places and giving communities the power to say no to fracking if they want to."

Your Tweets

Christine Jardine: The vow has been delivered and more thanks @scotlibdems

The Ranter 2012: I've heard from a good source that we have powers over all vat revenue of ginger and tartan wigs. #smithcommision

Community welcomes proposals

The Community Trade Union - which has its roots in the steel communities of South Wales, Scotland and northern England and the textile towns of the Midlands - has welcomed the Smith Commission proposals.

John Park, Assistant General Secretary of Community, commented: "These are radical proposals, which rightly respect the outcome of the referendum and the desire of all parties to see more decisions taken directly in Scotland.

"The referendum demonstrated a massive demand for change in the way that Scotland is governed and the Smith Commission should be commended for answering that call. Importantly, the report has also avoided firing the starting gun in a race to the bottom that would hurt working people.

"Essential safeguards for workers, such as the minimum wage, have been protected."

Tory trap?

#smithcommission

Author and Yes campaigner Alan Bissett

tweets: Is anyone on No side remembering that none other than Gordon Brown himself called the devolution of income tax a 'Tory trap'. Anyone...?

'Falls far short'

Linda Fabiani, the East Kilbride MSP, was one of the SNP members on the Smith Commission. She says the powers to be transferred are not sufficient.

Linda Fabiani
BBC

Ms Fabiani said: "It falls far short of the vow and the promises that were made. Because what we are talking about here is having power over less than 30 per cent of the tax for Scotland, less than 20 per cent of the welfare budget."

"So it's certainly not what was talked about as home rule."

'Right thing to do'

The Chief Secretary to the Treasury, Danny Alexander, said the Smith commission proposals "are the right thing to do".

Danny Alexander
Reuters

"It's part of a plan that we have today, which for the first time means that we will have home rule for Scotland within the United Kingdom, something that we, as Lib Dems, have campaigned on for a long time," he said.

Mr Alexander added: "What you have is taxes like income tax which are proposed to be fully devolved, all of the income tax raised in Scotland will go towards helping to pay for the public services that are delivered by the Scottish parliament."

English airports 'disadvantaged'

A MP from the north of England says he fears that the new powers to be granted to the Scottish parliament could have a detrimental effect on English regional airports.

Phil Wilson, Labour MP for Sedgefied, told the BBC that allowing Holyrood to set air passenger duty could disadvantage airports in the north of England.

Newcastle International Airport
BBC
There are fears Newcastle International Airport could lose customers

Mr Wilson continued: "The Scottish National Party's policy on all of this is to cut air passenger duty and this will give an incentive to people to travel to Edinburgh to fly or to Scottish airports to fly, rather than go from Newcastle or Manchester.

"And I know Ed Balls has actually written to George Osborne today to say that look, you know, regional airports - especially in the northeast of England - and the northwest, shouldn't be disadvantaged by these moves."

Your reaction

Michael Heron: The #SmithCommision isn't about making Yes people happy, it's about trying to placate No voters - and they *want* to convince themselves.

KillTheWavesJoe: Scotland still very much attached to runaway train of Westminster, as it hurtles toward the social cliff. #SmithCommision

Ian Young: What exactly are these 'job creating powers' that John Swinney wants? #SmithCommision

DJ Johnston-Smith: Quite certain that 30% tax & 15% of welfare powers can't justly be claimed to be "as close to a federal state as you can be" #SmithCommision

Only fools rush in

Dr Alan Renwick, author of '

After the Referendum: Options for a Constitutional Convention' has said the Smith Commission's report makes it "even more important" to resolve the governance issues facing the rest of the UK.

Rushing in to 'English votes for English laws', or remaining with the status quo would be wrong, he said.

Union flags
Getty Images
MPs from Scotland, Wales and Northern Ireland could be barred from voting on England-only matters

"The risk is that the UK ends up with a system which has not been properly thought through, leading to as many losers as winners. Political leaders would be handing over even more ammunition to the critics, such as UKIP", he said.

Mr Renwick continued: "Proper, detailed examination of all the options, and their likely effects, is needed. The best way to do this would be through a constitutional convention that allows ordinary British people to participate in the forging of a new constitutional settlement for the UK as a whole."

Options for England

The leader of the Commons, William Hague, has told MPs that the government will publish a command paper before Christmas on the options for England, following the Smith commission report.

william hague
BBC

Mr Hague said there would be proper debate and scrutiny of the Smith proposals.

Your Tweets

Ruth Wishart: Constitutional Convention. Calman Commisison. Smith Commission. Evolution, not revolution, but maybe same destination. #smithcommision

Matthew Riley: Hope no one is buying that #smithcommision is near what the Scottish people want. Just recommendations & barely more than Scotland Act 2012.

Christopher Silver: It's a potentially catastrophic approach for unionist parties to see #smithcommision as a line in the sand in advance of #ge2015

Smith Commission: In quotes

The proposals revealed by Lord Kelvin this morning have been met with a mixed reaction.

Lord Kelvin with Commission report
Getty Images

Find out what everyone from politicians, trade unions, business groups and charities have been saying

here.

Your Thoughts

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Mike Thomson, Uddingston: Interesting that Westminster will retain all oil and gas revenues, albeit they persistently talked down the value and benefit of such revenues in the weeks and months leading up to the referendum.

Frank, Shetland: What a disappointment. I have to agree with the new first minister. The voters will decide. It's a mix off very little. Where is the can-do spirit?

Fergus, Aberdeenshire: Smith sounds like a tax raising charter. Something i didn't vote for when I voted No.

John, Airdrie: How sadly predictable the SNP are disappointed with the Smith Commission. For the good of our country they are going to need to get over the referendum result. We said no. Accept it and get on with running the country as per the settled will of the people.

Reaction on Facebook

Over on our

BBC Scotland News Facebook page we're also getting your views on the Smith Commission proposals.

Prentice Baines says: "I thought we were promised 'extensive new powers' to the effect of 'home rule'?"

Les Mason says: "Air Passenger Duty is welcome. Hopefully allow us to make Scottish airports more competitive and negate the need to always route through Heathrow/Gatwick."

At a glance

So what is in the Smith Commission report?

Smith Commission
PA

Here is a

recap on the main points from the report, which can be read in full
here.

Poverty fight 'goes on'

Shelter Scotland welcomed powers to abolish the so-called bedroom tax.

Demonstration at Glasgow Green
BBC

Director Graeme Brown said: "It is critical that the new powers for the Scottish Parliament are used to tackle poverty and inequality generally and poor housing and homelessness specifically.

"There is a long way to go before these proposals become a reality for people across Scotland and our priority remains helping Scotland's most vulnerable tackle bad housing and homelessness."

Are Scotland's new powers fair?

Robert Peston

Economics editor

The Smith commission has apparently made some huge decisions.

But possibly the most important economic decisions relating to Scotland's new powers, on the size of the grant Scotland will receive in future and how much it can borrow, are yet to be taken.

Read

my blog on whether the new tax spending powers to be devolved to Scotland are fair.

'Not enough welfare'

Disabled people's organisation Inclusion Scotland welcomed plans to devolve control over disability benefits and the Work Programme.

Man in wheelchair waiting for bus
Rex Features

But the group said it is disappointed that the commission failed to devolve all welfare and more fiscal powers to Scotland.

Bill Scott, Inclusion Scotland's policy director, said: "We consulted with hundreds of disabled people and their near unanimous view was that we needed Devo Max, including the devolution of all welfare benefits.

"However, we are pleased that the Scottish Government should get more control over employability schemes. This cluster of powers has the potential to make a real difference to Scots disabled people's lives."

Reaction on twitter

#smithcommission

Dave Murchison: Unionist parties in Scot. Parl. telling Sturgeon to basically shut up and accept that's all Scotland is getting. #indyscot #smithcommission

Peter A Russell: Smith Commission was @theSNP 's chance to unite Scots around new settlement. They have blown it, and failed Scotland. To their eternal shame.

Grant McKenzie: #smithcommission is only recommendations! @jackiebmsp, you need to learn the difference between the process and having delivered

Sam Ghibaldan: The #SmithCommission, which included the SNP, has gone well beyond #TheVow. The SNP should remember people rejected independence #FMQs

Clegg: Over to you, Scotland

Deputy Prime Minister Nick Clegg hailed

the Smith Commission's recommendations as "The Vow Max".

Nick Clegg
BBC

He told the BBC: "Myself, David Cameron, Ed Miliband made this vow that more powers would be handed to Scotland.

"We've not only delivered on that vow, on the timetable that we said, we've over-delivered on it - it's 'Vow Max', if you like."

Mr Clegg added: "And now we will have a Scottish parliament which can raise the majority of the money that is spent in Scotland, you have a welfare system for Scotland.

"It won't ask anything more of English taxpayers - anything that the Scottish government wants to do now or in the future will have to be paid for in Scotland itself. I think that is a sensible settlement and I back it, and I back it fully."

'Be smart with tax'

Andy Willox, Scottish policy convenor of the Federation of Small Businesses (FSB), said the proposals "seek to bridge the gap between the spending power of the Scottish parliament and the health of the country's private sector".

Man working at machine
Thinkstock

He added: "We know that our members' preferred course of action in the event of a 'No' vote was a Scottish Parliament with more powers, and today's agreement certainly moves in that direction.

"No matter how the Scottish Parliament chooses to use new powers, we cannot see a new administrative burden fall on Scottish businesses, or firms who trade or employ north of the border.

"We must develop smart tax and regulatory systems which take the administrative sting out of any changes for the business community."

Hosie: 'No powerhouse parliament'

Deputy SNP leader Stewart Hosie

tweets: The #smithcommission proposals are welcome as far as they go... But they will NOT deliver the powerhouse parliament promised. #VoteSNP

Stewart Hosie
BBC