MPs approve Scotland Bill amid criticism it falls short of Smith agreement

It will now be passed to the House of Lords for consideration and will need approval in the Scottish Parliament before its given royal assent in spring next year – before the Holyrood election in May.

The UK government claimed it will make Scotland the world’s most powerful devolved assembly while the SNP said it has failed to deliver on Smith.

It will give Holyrood the power to: set the bands and rates of income tax from April 2017, retain half of all VAT receipts, and top up welfare benefits as well as create new payments.

Amendments tabled by the UK government meant to clarify parts of the bill were approved – among these control over abortion law and strengthening the powers over welfare. This includes the power to compensate for cuts to tax credits made by the UK government.

However, opposition parties tabled amendments were rejected.

For example, the SNP proposed that full control over child and working tax credits be devolved to Holyrood as well as the power to determine when to hold an independence referendum.

A proposal to allow Scotland to keep all of its VAT was also rejected in addition to Labour’s amendment for the establishment of an independent commission to look at whether full fiscal autonomy was feasible.

SNP MP Pete Wishart criticised the amount of time available to discuss the bill and its amendments, which had to be completed within six hours.

Mr Wishart said the lack of time was a “slap in the face” for Scotland, and added: “Scotland is watching these proceedings and it will not understand the gross disrespect shown to our nation’s debate and our nation’s business.”

But David Mundell, the Scottish Secretary, said it was a “significant day for Scotland”.

He added: “The government’s amendments will strengthen the Scotland Bill’s provisions and clarify its delivery of the Smith Commission agreement. With that done, it will be time for Scotland’s political parties to work together to make the new powers a success for everyone in Scotland.

“The amendments put beyond doubt the bill fully delivers the Smith Commission agreement.”

Christine McLintock, president of the Law Society of Scotland said the passing of the bill was a ‘significant milestone’.

She added: “We are pleased to see that the UK government has changed the bill to make sure it declares the UK government’s and the UK Parliament’s intention that the Scottish government and the Scottish Parliament are recognised as permanent parts of the constitution, and in doing so have accepted the advice of the Law Society of Scotland, and others, that the original clause was unclear and insufficient in this respect.

“We are also pleased to see that the bill has been changed to include a requirement for a referendum in Scotland should a future UK government wish to abolish the Scottish Parliament and the Scottish government. This was something that we highlighted in our written evidence.”

Ms McLintock added: “We still have concerns around the extent to which the bill puts the Sewel convention on a statutory footing.

“We would have liked to have seen the legislation extended to include those aspects of the convention which require the consent of the Scottish Parliament when changes are being proposed to the legislative competence of the Parliament or the executive competence of the Scottish government.

“It was disappointing that the UK government did not accept the amendments tabled which would have achieved this.”