Mundell and Swinney face MSPs over further devolution powers

http://www.bbc.co.uk/news/uk-scotland-scotland-politics-33269162

Version 0 of 1.

The Scottish secretary and Scotland's deputy first minister have both appeared before MSPs to argue their case over further devolution powers.

David Mundell and John Swinney told the Devolution Committee that their opponents' plans would damage Scotland.

Conservative MP Mr Mundell said SNP amendments to the Scotland Bill would lead to £10bn of spending cuts.

Mr Swinney said the bill was inadequate, particularly in relation to social security and employment support.

The Scotland Bill currently passing through Westminster followed the publication of recommendations by the Smith Commission on further devolution.

It will give Holyrood control over income tax rates and bands, a half share in VAT revenues and a greater say over some welfare powers in Scotland.

But the Scottish government has argued that the legislation does not fully deliver on the cross-party Smith agreement.

It also wants additional powers over business taxes, employment policy, a number of benefits and equality law to be added to the bill following the SNP's general election success.

'Respect for referendum'

Scottish Secretary Mr Mundell told the committee the Conservative government would resist SNP calls for full tax and spending powers to be handed over to Holyrood.

He said: "Full fiscal autonomy was not in the Smith agreement and it is not going to be added to the Scotland Bill.

"It would be bad for Scotland - leaving us with £10bn less to spend by the end of this parliament. The government will resist changes to the bill that would be bad for Scotland.

"The referendum result must be respected. The Scotland Bill is about strengthening Scotland's position within the United Kingdom. It is not an opportunity for those whose ambition is to end the United Kingdom."

Mr Swinney told MSPs there were still "significant deficiencies" in the legislation.

And he said the UK government had not taken forward any opposition amendments at the committee stage of the bill at Westminster.

"Since the publication of the draft clauses in January, the [Scottish] government has made a range of suggestions of areas where we believed the draft clauses needed to be revised to deliver the substance of and the spirit of the Smith Commission," he said.

"On publication of the bill we have continued that effort and set out a range of different areas where we believe that should be the case.

"The only area where there has been any meaningful change in the substance of clauses is in welfare with the addition of a power to create benefits to top up reserved benefits although, in my reading of the bill, not in respect of mitigation of sanctions that would be undertaken as a consequence of the wider UK approach on welfare reform."