As David Cameron and Nick Clegg today produce their full Coalition Agreement, Westminster sources have suggested a needs-based assessment to replace the controversial Barnett formula will be flagged up in next week’s Queen’s Speech, which will lay out the Liberal-Conservative Government’s legislative plans for the coming session.
Following discussions yesterday between the Chancellor and Danny Alexander, the Scottish Secretary, a decision has been made to set up a review to look at the Scottish Government’s request to receive a fossil fuel levy worth £185 million.
Sources made clear that Holyrood would be part of the process, telling The Herald: “It’s a good step forward and will help foster relationships on Scottish matters.”
In a speech to the CBI in London last night, Chancellor George Osborne reaffirmed his commitment to cutting corporation tax in an effort to boost the economic competitiveness of British firms, while raising personal tax allowances for millions of people.
Meanwhile, David Cameron came under fire last night after making a bid to reform a key Tory committee that has historically been a focal point for backbench unrest.
Conservative MPs are being balloted over whether ministers should be allowed to play a full part in the 1922 Committee. Traditionally, membership has been limited to backbenchers when the party is in government.
The surprise move could give the Prime Minister more control over the influential body amid growing disquiet about the coalition deal with the Liberal Democrats.
