SNP accused of "full fiscal fudge" as parties prepare for two-day battle over Scotland Bill

As political parties gear up for two days of intense debate at Westminster on the new legislation on Monday and Tuesday, the SNP has set down changes it believes will fully deliver the recommendations of the Smith Commission and create more powers the party advocated in the General Election.

Among the powers the Nationalists are seeking are those that would remove what they believe are Whitehall vetoes on using powers over benefits as well as devolving extra powers over issues like working age benefits, child benefits, equal opportunities and employment programmes together with those over National Insurance, Corporation Tax and Capital Gains Tax.

Its lengthy amendment on FFA talks of the UK and Scottish Governments entering into an "Economic Agreement" as soon as possible, which would set out a plan to implement the transfer of all tax powers to Scotland but notes this would be "implemented over a period of time as the Scottish Parliament and the Scottish Government acquire capacity to carry out their additional competences".

Tory backbencher, Sir Edward Leigh, who had proposed a swift empowerment of Holyrood on FFA, has put down a specific amendment, proposing the transfer of all welfare to the Scottish Parliament, including occupational and personal pensions and war pensions.

Meantime, Labour, as part of its bid for "better transparency", is proposing: an independent commission on FFA to consider its potential impact on the Scottish economy, which should report back by March 2016; a review of VAT refund schemes and the creation of a Scottish version of the UK Government's independent economic forecaster, the Office for Budget Responsibility.

Following the row this week over the SNP Government's contribution to the upkeep of the Royal Household, Conservative right-winger Jacob Rees-Mogg has tabled a motion "to ensure that Scotland continues to contribute its share towards the costs of the monarchy".

Ian Murray, the Shadow Scottish Secretary, said: "The SNP have once again announced their ambition for full fiscal fudge without actually asking for full fiscal autonomy; it's a no, nay, never, no more approach."

The Edinburgh MP claimed that the Nationalists' amendments on devolving corporation and capital gains tax to Holyrood had been ruled out of order by the Commons authorities because they had been badly drafted.

"Even in their other amendments to the Bill, it's quite clear they are playing catch-up with Labour's, which aim to ensure the Smith agreement is delivered in full and Scotland has much greater control on welfare."

He added: "We would hope that the SNP would take the opportunity next week to support our amendments, which would provide transparency on full fiscal autonomy and create a Scottish Office for Budget Responsibility."

A senior Conservative source also hit out at the Nationalist amendments on FFA, highlighting the non-specific timescale and saying: "This is more confirmation that they are asking for something they don't really want and no doubt will grumble when they don't get it. It's more a case of full fiscal fudge."

But Stewart Hosie for the SNP told The Herald: "The amendment lays out in considerable detail the implementation that would be required by both governments to deliver FFA. As everybody knows that can't happen overnight and would require negotiations to be concluded."

He added: "Once again Labour has missed the plot on FFA and instead of issuing silly press releases would be better saying Yes to more powers for Scotland than trooping through the lobbies with the Tories."

Meantime, the Lords Economic Affairs Committee, as expected, announced an inquiry into the devolution of public finances, which would cover the issues of FFA and the Barnett Formula. John Swinney, the Deputy First Minister, is expected to be called to give evidence.