David Cameron has called for the debate over more powers for Scotland to shift to how they are used, as he insisted the pre-referendum vow made by Westminster leaders has been "delivered in full".
The Prime Minister said legislation agreed in the wake of last year's independence vote would give Scotland a "powerhouse parliament".
The Scotland Bill, which was backed by the House of Commons this week, will see MSPs handed control over income tax rates and bands at the same time as they are given some powers over welfare.
Mr Cameron insisted: "Now the debate can shift to how those powers should be used, that's the debate that now needs to start."
The legislation was introduced by the Conservative Government at Westminster to implement the recommendations of the Smith Commission.
Lord Smith, who was tasked with leading a review of devolution following last September's No vote in the referendum, said on Thursday that the Bill had honoured what the five political parties on his Commission had agreed.
''The legislation part, the bit that's gone through the House of Commons and will go through the House of Lords, I believe actually honours what we agreed," He told ITV Border.
However an SNP-led committee at Holyrood argues that the legislation contains ''a clear breach'' of the recommendations, with MSPs on the Devolution Committee wanting amendments to be made before it goes to the House of Lords.
Mr Cameron said: "This is a very big day for Scotland. Lord Smith himself has confirmed that the Smith Commission has been delivered in full. A vow was made, a vow was kept. Scotland will have that powerhouse parliament.
"Scotland wanted more devolution, the Smith Commission was set up to deliver more devolution and Lord Smith has now unequivocally said that Smith has been delivered. Smith confirms Smith.
"That's the big story and it's an important story because it means the vow about the powerhouse parliament is a vow that has been kept, in full. Now there can be a debate in Scotland about which powers to use, what to do with taxes, what to do with benefits, that's the debate that can now take place."
Responding to David Cameron's comments, Linda Fabiani MSP said: "Yesterday we had agreement from all parties in the Scottish Parliament calling upon the Secretary of State for Scotland to reinforce the powers being transferred to Holyrood - his last chance saloon to deliver amendments to the Scotland Bill in its final parliamentary stages.
"But today David Cameron has shown complete disregard for the Scottish Parliament's Devolution Committee which identified the remaining shortfalls in the Bill on a range of issues - from employment, to welfare, on the bedroom tax and devolution of the Crown Estate. Powers that should - and still can - be transferred to Scotland.
"The SNP wants to agree to a Scotland Bill that works, but a deal can only be reached with the financial support required to make it work. Lord Smith has given that stark warning - nobody should be signing up to a Bill without a proper fiscal framework in place."
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