Liberal Democrat Chief Secretary to the Treasury Danny Alexander said:
"This plan delivers all that was promised in the referendum – and much, much more. This is nothing less than Home Rule for Scotland within the United Kingdom, for which Liberal Democrats have been campaigning for generations. Lord Smith and all the commissioners deserve our heartfelt thanks for their work in making it happen.
"With control over £2.5 billion of social security, new economic powers, and Scottish taxes paying for the majority of devolved policies, the Scottish Parliament will be financially self-sustaining for the first time.
"We now need to work on an equally radical plan for devolution of power within Scotland. We need to reverse the tide of centralisation of recent years, and give real power back to communities in the Highlands and Islands and across Scotland.
"This is a plan that 100% of Scottish people can unite around, and which everyone who has the best interests of Scotland at heart will now work to deliver. This is a major step on the road to a federal UK which we should all embrace and not fear.’