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Devolution1.95 The government continues to deliver against its commitment for further devolution toScotland, Wales and Northern Ireland. The Smith Commission was established on 19 September2014, as a cross-party process to decide what new powers should be transferred to the ScottishParliament. Following the Smith Commission report on 27 November 2014, the governmentpublished draft legislative clauses on 22 January 2015. The clauses published will make itpossible to translate the Smith Commission Agreement into law quickly in the next Parliament.Work has started on Scotland’s new fiscal framework and this will be agreed alongside theintroduction of legislation.1.96 The government announced new devolution arrangements for Wales on 27 February2015. The measures include the introduction of a floor in the level of relative funding the UKgovernment provides to the Welsh Government, in the expectation that it will call a referendumon Income Tax powers in the next Parliament. Work has already started on the funding floor andthe details will be agreed in the next Parliament. Additionally, the government will consider thecase and options for devolving powers to the Assembly over Air Passenger Duty (APD), informedby a review of potential options to mitigate the impacts of APD devolution on regional airportsin England.1.97 The Scottish and Welsh governments’ sources of borrowing are also being extended toinclude bond issuance for capital investment. These powers will be within existing borrowinglimits, and subject to a number of conditions, including that the Scottish and Welshgovernments will be solely responsible for meeting their liabilities and that the UK governmentwill provide no guarantee on any bonds issued. 611.98 In December 2014, as part of the Stormont House Agreement, the government agreeda package of significant financial support for the Northern Ireland Executive. The agreementemphasised the need for the Executive to demonstrate that its finances are being put on asustainable long-term footing. On that basis, legislation was introduced to Parliament on 8January 2015 to devolve a Corporation Tax rate-setting power to the Northern Ireland Assembly.The Bill has now completed consideration by the House of Commons, and is expected to receiveRoyal Assent before the 2015 General Election.1.99 The Agreement was also clear that the Corporation Tax powers would only be commencedin 2017 if the Executive demonstrates that its finances are on a sustainable footing, which willrequire successfully implementing a range of reform measures, including changes to the welfaresystem. It is critical that the parties continue to focus on meeting their commitments, so that theopportunities presented by the Stormont House Agreement are not lost.Building a strong and stable financial system1.100 Over this Parliament, the government has introduced a significant set of reformsthat have built a much stronger and more stable financial system. The government has nowcompleted the task of ensuring that banks separate their core high street banking servicesfrom investment banking. The government legislated to implement this ring-fence through theBanking Reform Act (2013). On 5 March 2015 the Banking Reform Pension Regulations werepassed in Parliament, completing the fourth and final piece of legislation required to implementthe ring-fence. The package of financial sector reforms completed in this Parliament will helpmake sure that taxpayers will never again need to bail out the banks.1.101 Safeguarding financial stability requires constant vigilance. The Financial PolicyCommittee (FPC), created by this government, plays a central role in monitoring the financial61Further detail on the conditions for the Scottish and Welsh governments’ bond issuance powers can be found in the‘Debt and reserves management report’ published alongside the Budget.32 Budget 2015