Commenting on the Scottish Government's submission to the Calman Commission, Liberal Democrat Finance spokesperson Jeremy Purvis said:
"We are pleased that the Scottish Government has now made a submission to the Calman Commission, as agreed during our Budget negotiations.
"This is a significant shift in their position.
"The Liberal Democrats have argued consistently, and made clear in the Steel Commission three years ago, that the case has been made for the Scottish Parliament to have borrowing powers. But the SNP still cannot resist looking to countries such as mega high tax Norway as their example.
"It is also concerning that they seem to be arguing for borrowing to fund tax cuts. This is a deeply flawed economic argument as we can see from the VAT cut with impending tax increase, which the SNP voted for in Westminster last December.
"Liberal Democrats have now assembled all-party support for our agenda for a Home Rule Scottish Parliament within the UK.
"Just eighteen months ago, we were a lone voice in the Scottish Parliament putting forward the argument that the status quo was not an option, and that a review of the powers of the Parliament within the UK was the right way forward.
"Labour, the Conservatives and finally the SNP now agree on this direction of travel. This is a significant achievement for us.
"We will be making further strides on this at our conference this weekend with practical and economic arguments for further legislative and financial devolution."
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