WESTMINSTER faces a "no brainer" choice between giving Holyrood £15 billion worth of new tax powers under the UK Government's plans or creating a £10bn black hole in the nation's coffers under the SNP's flagship policy of Full Fiscal Autonomy, according to David Mundell.

 

The declaration from the Scottish Secretary is the opening salvo on the first of two days of House of Commons debate on the new Scotland Bill, which will focus on tax powers today and welfare powers tomorrow.

The level of heat that will be generated has already been illustrated in pre-debate skirmishes, with the SNP insisting the choice is between Holyrood or David Cameron's Conservatives exercising control over Scottish policies.

The Liberal Democrats have condemned the SNP's approach, with their Scottish leader Willie Rennie urging them to unite behind the Bill "instead of putting forward amendments designed to divide".

For its part, Labour has urged politicians to "stop playing games with the constitution" and focus on how to use the significant powers the Scottish Parliament is about to receive.

From the UK Government's perspective, the legislation will make Holyrood one of the most powerful devolved parliaments on the planet, ensuring it has a wide range of tax powers worth, when £4bn of VAT receipts are assigned to Edinburgh, £15bn.

"This is a 'deal or no deal' moment for the fans of FFA," declared Mr Mundell. "They can either vote for a more powerful Scottish Parliament that shares risks and resources with the rest of the UK or they can support a black hole plan, that would cost Scotland the same amount as we currently spend on education and justice combined. Most people would consider this a bit of a no brainer."

The Clydesdale MP made clear FFA would be bad for Scotland, leaving the nation with £10bn less to spend by the end of this Parliament; this, he noted, was equal to the amount the Scottish Government spent on education and justice.

When coupled together with Edinburgh's dramatically lower oil forecasts, he added: "This makes their current policy of full fiscal autonomy for Scotland all the more of a full fiscal shambles."

The SNP, for their part, have tabled a raft of amendments to devolve extra powers from issues like working-age benefits to National Insurance.

A lengthy amendment on FFA refers to the UK and Scottish Governments entering into an "economic agreement" and notes the transfer of all tax and spending powers would be "implemented over a period of time as the Scottish Parliament and the Scottish Government acquire capacity to carry out their additional competences".

Labour and Tory critics have denounced this as a "full fiscal fudge" but the SNP 's Angus Robertson has hit back, saying: "At a time of savage cuts to the welfare state by the Tories - causing real hurt to hard working families and vulnerable people, and driving more and more people to food banks - the choice is between having welfare powers in Scotland's hands, or leaving them in the hands of Iain Duncan Smith and George Osborne. There is no other option."

He challenged Labour to support its proposals between "Scottish control or Tory control", adding: "Voting against the SNP's amendments or abstaining will signal that they prefer Tory control."

But Ian Murray for Labour, which has also put down a raft of amendments to give Holyrood more welfare powers and create greater spending transparency, urged people to keep their focus on the implementation of more powers.

"Too often it has seemed that getting one over on opponents is more important than getting the best deal for families in Scotland; people deserve better than that. It's time to stop playing games with the constitution and deliver for Scotland.

"Labour takes a grown-up and credible approach to the constitution. Where we agree with other parties we will say so. That's grown-up politics," added the Shadow Scottish Secretary.