Sturgeon: New Scottish Powers 'Watered Down'

Westminster's political parties have kept their pre-referendum vow to the Scottish people and new powers for the Scottish Parliament are guaranteed, David Cameron has said.

The Prime Minister was speaking in Edinburgh after draft clauses that will form the basis of new laws devolving more powers to Holyrood were published by the UK Government.

He said the plans - 44 clauses in all - represented "the best of both worlds".

He said: "Our vow kept, Scotland's place in the United Kingdom strengthened, the Scottish Parliament more powerful, responsible and accountable to its people, and powers that are built to last, securing our united future."

But Scotland's First Minister Nicola Sturgeon said the proposals for the greater devolution had been "watered down" and meant the Scottish Parliament would not be able to abolish the so-called "bedroom tax" or have control over other welfare reform.

Ms Sturgeon said: "Too much of what the Prime Minister has set out imposes restrictions on the recommended devolved powers and would hand a veto to UK ministers in key areas.

"For example, the proposals on welfare do not allow us to vary Universal Credit without the permission of the UK Government. That means - under the current proposals - we will not have the independence to take action to abolish the bedroom tax.

"At the same time, the power argued for by stakeholders to create new benefit entitlements in any devolved area has simply not been delivered, while the command paper makes clear that, pending devolution of disability support, the roll-out of personal independence payments and the cut to spending on disability benefits will continue.

"This cannot, under any interpretation, represent the meaningful progress on the devolution of the powers we need to design a social security system that meets Scotland's needs."

"The legislation published today does not represent the views of the Scottish Government, but it does represent some progress."

The new powers will mean:

:: Holyrood will be able to decide how 60% of public money is spent.

:: Scotland can control and set income tax rates and bands - and keep the money raised

:: Scottish Parliament to get power over air passenger duty

:: £2.5bn package of welfare powers but crucially not over the Universal Credit reform

The law has been published within two months of the Smith Commission, which was set up by Mr Cameron in the wake of the Scottish referendum, publishing its devolution proposals.

It comes a day after Ms Sturgeon, said that she would order SNP MPs to vote on English health matters to protect the Scottish NHS.

Her comments were incendiary to those pushing Mr Cameron to make progress on his post-referendum promise of English votes for English laws.

There is anger that the 59 Scottish MPs are allowed to vote on English matters, but where powers are devolved, English MPs cannot vote on Scottish concerns - a conundrum known as the West Lothian question.

Chief Secretary to the Treasury Danny Alexander told Sky News: "There will have to be changes in the House of Commons to reflect devolution that I think, and my party believes, needs to reflect the votes of people in England - not Tory votes for English laws but based on the proportion of votes cast in an election."

Labour is opposed to changes because it has 40 Scottish MPs and losing their vote on issues in Parliament would be crushing.

Downing Street said that, in face-to-face talks with Ms Sturgeon, Mr Cameron would challengeMs Sturgeon on her comments her party's MPs could vote on matters relating to the NHS in England in the event of another hung parliament.