Everything You Need To Know About Scotland's New Powers

    The Smith Commission has announced what new powers it believes Scotland should get. Here's what you need to know so far.

    A range of new powers for the Scottish parliament were set out today.

    The cross-party Smith Commission, which was set up in the aftermath of the independence referendum to deliver new powers to Scotland, has announced its main points of agreement.

    In the week before the referendum, the three main UK party leaders signed "The Vow", a promise of further devolution. The recommendations announced today are due to be made into draft legislation by the end of January, and are already raising questions about the future of the UK.

    Here's what you need to know so far.

    1. Scotland will be able to set its own income tax rates.

    This is the headline you'll see a lot of today. Scotland's control over its own income tax is the biggest transfer of tax powers in the modern era, and will allow the Scottish parliament to increase income tax for the rich if it chooses to.

    It's being seen as a significant retreat by Labour. Just one month ago, Gordon Brown said fully devolving income tax would be a "lethal cocktail" that would eventually lead to the break-up of the UK.

    2. Scotland will have the power to give 16- and 17-year-olds the vote in future Scottish elections.

    The Smith Commission recommended that the Scottish parliament should have the power to control its own elections, and that it should ensure 16- and 17-year-olds have the vote in future elections, as they did in the independence referendum.

    3. Holyrood will take control of some benefits.

    Powers to create new benefits in devolved areas will be given to the Scottish parliament, and a range of other benefits for carers, disabled people, and those who are ill will also be fully devolved.

    4. Air Passenger Duty and some VAT will be devolved.

    The SNP is likely to reduce Air Passenger Duty, as it promised to do during the referendum campaign. That will lead to cheaper flights and "millions more passengers coming to Scotland", according to Gordon Dewar, the chief executive of Edinburgh Airport.

    5. BBC Scotland will report to the SNP-led Scottish parliament.

    Smith recommends that the BBC should put its annual report and accounts before the Scottish parliament. The SNP has had an unfriendly relationship with the BBC in the past couple of years, with Alex Salmond saying the broadcaster was "absolutely" biased against the idea of Scottish independence.

    6. The SNP isn't satisfied.

    Although the SNP has agreed to the Smith Commission proposals, it criticised them this morning for not going far enough. A spokesperson said: "The proposals clearly do not reflect the full wishes of the people of Scotland, and also fall far short of the rhetoric from the No campaign during the referendum."

    I welcome all new powers - and pay tribute to Lord Smith - but 70% of our taxes and 85% of welfare staying at Westminster not real home rule

    7. Labour is worried this is the start of the end of the UK.

    A number of unnamed Labour MPs and MSPs gave their thoughts to Channel 4's Gary Gibbon on the proposals as they were leaked last night. One said: "If the Tories win next year that's it now, [Scotland's] gone. … It is very frightening."

    8. English votes for English laws is next.

    The announcement of more powers for Scotland will increase demands for more devolution elsewhere, and David Cameron was quick to remind people that more English powers are on the way.

    1/2 I'm delighted with the Smith report on devolution. We are keeping our promise to the Scottish people.

    2/2 This is a good day for the UK. Before Christmas I will bring forward proposals on English votes for English laws.

    9. None of this is final.

    This is the agreement but it's not set in stone. However, it seems very unlikely the report will not be fully implemented.

    Lord Smith says @David_Cameron pledged this morning #smithcommission wld be implemented "in full"; Smith expects total package be accepted