Politics 
Benefits cap: The government has made a concession on its proposed introduction of a benefits cap of £26,000 a year from 2013 by allowing individuals who lose their job a nine-month grace period to find work before the cap is imposed.  A Lords amendment removing child benefit from the cap was overturned by the Commons. The Westminster government plans to instigate a “bedroom tax” for renting under occupied homes. The move could see 95,000 Scottish households receiving £27 to £65 less per month in benefits.(Scotsman page 10, Herald page 6, The Guardian page 6, Record page 2, Mail page 8)

Sterling: Finance secretary John Swinney said yesterday that he “cannot foresee the set of circumstances” which would lead to a Scottish government in an independent Scotland calling a referendum on joining the euro and in effect ruled out joining the currency for “the medium term”. Professor John Kay, a former economic advisor to Salmond criticised these plans. He said there would be little difference under independence if Scotland retained the same currency as England. However, an article by John Swinney in The Financial Times stated that Scotland could “go it alone and remain triple A”. (Scotsman page 1, Press and Journalpage, 14)

Army:  Letters from Defence Secretary Philip Hammon to Sir Menzies Campbell reportedly suggest that uncertainty over the constitutional future is putting plans to double the size of the army based in Scotland in jeopardy. (Scotsman page 1)

David Miliband: David Miliband has said Labour needs “restless rethinking” or its purpose and policies if it is to return to power. The former Foreign Secretary, who lost out in the Labour leadership to his brother, has set out a seven-point plan for the party. (Scotsman page 19)

Independence debate: Tavish Scott, the MSP for Shetland, in the Scotsman comments that modern Scotland is diverse and rule from the central belt is viewed with scepticism by many in the Northern Isles.  Michael Kelly in the Scotsman comments that many major decisions would still be made in England even if we became independent.  John Swinney in the Scotsman argues that independence would help encourage economic growth in Scotland.

Bullying: Several high ranking staff have left Historic Scotland, amid reports of a culture of bullying. Two have claimed explicitly in private that they had been bullied, whilst the three others took stress leave before leaving. (Times page 3)

"Leylandii Law”: An SNP Backbencher was yesterday given permission to introduce a private members bill which will work to stop people allowing their hedges to grow too high. The plan is hoped to cut ambiguity and promote neighbourhood cohesion. (Courier and Advertiser page 2)

Economics
Fred Goodwin: Alex Salmond has expressed regret for encouraging former RBS chief executive Fred Goodwin win the takeover of Dutch bank ABN Ambro. He went on to suggest that all peers who have serious criminal offences should not be allowed to retain their honours, citing the case of Fred Goodwin as a “convenient distraction” from bigger problems. A survery in the Sun found that 72% of the public agreed with Salmond. The House of Lords may introduce a policy of expelling any member who has served a year in jail. This is already the case in the House of Commons. (Scotsman page 1, Bill Jamieson in the Scotsman, Herald page 1, Sun page 9, Guardian page 30, Daily Record page 5, Express page 2, Telegraph Friday 3, February, 2012
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