"You may remember that I was clear that the Budget proposed by the SNP was not an adequate response to the economic trauma facing Scotland.
- The SNP have changed their position and will now engage with the Calman Commission. This is the best way to get extra powers for the Scottish Parliament. It will allow, for example, the Forth Bridge to be paid for without jeopardising every other transport project in Scotland. Professor John Curtice told the BBC on Sunday that this concession could be the "most interesting long-term consequence of all of this."
Lord (Jim) Wallace, Liberal Democrat representative on the Calman Commission
said: "I welcome this truly significant and progressive move. As a result of the new position of the Scottish Government there is now assembled a powerful coalition for change."
Councillor Jenny Dawe, the Liberal Democrat leader of Edinburgh, has welcomed this move. She said today, "A proper programme of support for school building will be a very helpful move. So far, this has been missing from the Government's plans."
This will identify where resources are not being used to support the economy. It will unlock the resources that could pay for permanent tax cuts for low and middle earners.
- The SNP have changed their position and will ask their Council of Economic Advisers to make recommendations on the Budget to help it meet the challenge of the recession."