Scotland has two governments: the UK government is responsible for matters including, defence, foreign affairs, the economy, social security and the constitution; and the Scottish government is responsible for matters including health, education, justice and policing and local government. Although responsibility is divided in this way, the two governments work together on many issues and cooperate to make sure that the devolution settlement is well managed. The division of responsibilities is not fixed, and it has changed several times since devolution began in 1999. In 2009, the independent Calman Commission recommended a significant transfer of tax raising powers to make sure the Scottish Parliament has responsibility for raising money, as well as spending it. The UK government agreed with the Calman Commission’s recommendations, and through the Scotland Act 2012 provided the largest transfer of financial powers from Westminster since the creation of the United Kingdom. We are now working with the Scottish government to implement the Scotland Act.