THE Smith Commission's recommendations sparked a mixed reaction across the country, reflecting the views expressed by the political parties that hammered out the deal.

The reception has been anticipated by Lord Smith, who when setting out his report said some would think the proposals had gone too far, while others would be unhappy that they had not been as radical as they had hoped.

The Scottish Council for Voluntary Organisations (SCVO) and the Scottish Trades Union Congress (STUC) expressed disappointment that the settlement had not gone far enough.

Grahame Smith, general secretary of the STUC, said that while there were some positive proposals, "without the key powers over inheritance and capital gains taxes, meaningful tax and land reform will be more difficult."

He added: "The power to create additional welfare provision is certainly to be welcomed as is the devolution of the work programme.

"However, in sum total, there is not enough to empower the Scottish Parliament to tackle inequality in Scotland."

John Downie, the SCVO's director of public affairs, described the final report as a missed opportunity.

He said: "What we're seeing today is piecemeal devolution of powers which will not make way for the integrated and more efficient approach to welfare which is vital to delivering the fundamental change and greater social justice that so many people in Scotland want."

Lynn Henderson, Scottish secretary of the civil servants' Public and Commercial Services (PCS) union, described the proposals as tame.

However, while Scottish powers over tax and welfare fell short in the eyes of some, the deal was enthusiastically backed in other quarters.

Some aspects of the agreement, such as the devolution of electoral powers, were wholeheartedly supported. John Cridland, Confederation of British Industry director-general, welcomed the "support for maintaining the key tenets of a UK single market".

He said: "With the vast majority of Scotland's exports going to the rest of the UK, it is vital that businesses based in Scotland can operate without complexity across the UK regions and nations."

The Institute of Chartered Accountants of Scotland welcomed the new tax powers and the recommendations on improved collaboration between the Scottish and UK governments, and greater parliamentary scrutiny.

Director of taxation Elspeth Orcharton said: "The devolution of income tax rates and bands delivers an intelligent political result, balancing the vow to deliver greater control and accountability to Scotland while remaining part of the United Kingdom."

Liz Cameron, director and chief executive of the Scottish Chambers of Commerce, said: "We have long called for new ways of working in Scotland to maximise business growth and today's recommendations serve as a milestone in reaching our potential."