A SERIES of "vetoes," which critics claim could neuter new powers being devolved to Holyrood, are to be dropped from the Scotland Bill, David Mundell will announce today.

The Secretary of State for Scotland will also include a provision in the legislation giving Holyrood greater flexibility over creating new benefits for carers.

The move was given a cautious welcome by Scottish Labour, which has called for Holyrood to be given greater responsibility for welfare.

The SNP, however, warned the Bill would fail to deliver promises made in the run-up to last year's independence referendum.

The Scotland Bill, which will transfer almost full control over income tax and responsibility for a £2.5 billion welfare budget to Holyrood, followed the cross-party Smith Commission.

Mr Mundell said: "We have listened to points raised as the Bill has been debated and taken steps to improve the legislation even in areas where we believed the bill was already delivering Smith.

"These improvements will strengthen the Scotland Bill and put beyond any reasonable doubt for any reasonable person that the government is delivering the Smith Agreement exactly as we promised we would.

"We are making the Scottish Parliament one of the most powerful devolved parliaments in the world."

The SNP has claimed the Bill contains a veto over Holyrood's proposed new power to vary the housing element of Universal Credit, the mechanism by which MSPs will be able to abolish the so-called bedroom tax.

It also claims vetoes could be used to limit powers to help people with their heating bills, oblige energy companies to reduce charges for vulnerable customers and allow voters to add their names to the electoral register online.

Mr Mundell has consistently rejected the claims but said: "We are acting in good faith and want to build consensus."

MPs will debate the proposed changes on November 9.

Ian Murray, the shadow Scottish secretary, said: "We'll need to see the amendments in full but if the direction of travel is as suggested we welcome that.

"If David Mundell comes to our position, especially on welfare, we'll support that."

But the SNP's deputy First Minister John Swinney said: "The changes described by the Secretary of State continue to fall short of delivering the Smith report in full."

He repeated his call for "constraints" on social security powers to be removed from the bill and said control over all Crown Estate "economic assets" must be transferred to Holyrood.

He added: "Unless all of these amendments are accepted it is not credible to claim that the Smith Agreement has been delivered."