Nicola Sturgeon slammed newly-published legislation to give more powers to the Scottish Parliament as falling short “in almost every area”.
Her claim that the Scotland Bill allowed a UK Government veto in key policy areas was rejected by the Scotland Office as “factually wrong”.
The first minister said the Scotland Bill published at Westminster failed to deliver on the recommendations of the cross-party Smith Commission, set up in the wake of last year’s referendum on independence to agree a package of further devolution.
The UK Government said the bill will make Holyrood responsible for raising about 40% of taxes, with the power to set the thresholds and rates of income tax.
It also proposed giving the Scottish Parliament a share of VAT revenues, responsibility for air passenger duty and about £2.5billion worth of new powers over welfare.
During first minister’s questions, Ms Sturgeon said in some areas the bill would allow for the UK Government to veto any attempt by the Scottish Government to exercise the devolved powers.
“The bill has been published within the last hour or so and from my glance at it I think it falls short in almost every area,” she said.
“The bill, for example, doesn’t contain the full welfare powers recommended by the Smith Commission and in some key powers it retains, unbelievably in my view given the amount of concern that was expressed about this, it retains a veto for the UK Government on key policy areas.
“So, for example, if this parliament wants to abolish the bedroom tax, as I hope we do, the UK Government would still have a right of veto over whether we could do it or not. Now I’m sorry, but that is not devolution.”
A Scotland Office spokesman said UK ministers would work constructively to deliver a fair and balanced settlement that fulfilled the Smith Agreement.
“It is factually wrong to claim there are vetoes in the bill. These are sensible, practical arrangements to ensure the transfer of new powers smoothly,” he said.
“This is reciprocal – in a number of areas of the bill, UK Government ministers must also consult Scottish Government ministers in taking decisions.”