UK Chancellor Philip Hammond visits Scotland for Brexit talks

Philip Hammond - PA

UK Chancellor Philip Hammond visits Scotland today to meet Scottish business leaders and politicians.

He will host a round table of representatives of Scotland's biggest industries, including oil and gas and financial services, before visiting the Scottish Parliament for talks with Nicola Sturgeon.

The visit comes a day after new powers over taxation were formally transferred to Holyrood.

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Hammond is expected to highlight £800m added to Scotland's infrastructure budget outlined in his Autumn Statement, as well as discuss the "challenges and opportunities" of leaving the European Union.

Ahead of the visit Hammond said: "Scotland’s contribution to the UK is invaluable and we have delivered on the Scottish Government’s call for increased capital funding and investment through our Autumn Statement.

"The rest of the UK is also Scotland’s most important market, providing four times the trade volume than that of the EU 27 - so it is imperative that we work together to achieve the best for everyone in the United Kingdom.

"The Scottish Government now has responsibility for significant areas of policy as a result of further devolution and I look forward to meeting with the First Minister of Scotland to ensure we seize the opportunities we face together in the future.‎"

The new powers mean from 2017/18 the Scottish Parliament will be able to set the rates and bands thresholds for income tax, excluding personal allowance.

Scotland's Finance Secretary Derek Mackay said details of the Scottish Government's plans for taxation in next month's draft budget.

“We welcome these legislative steps which will increase the Scottish Parliament’s powers over income tax from next year. The new powers will allow us to design an approach to taxation which will suit Scotland’s needs, balancing the need to invest with the recognition that many households are facing difficult economic challenges," he said.