John Swinney has been accused of making “ludicrous” demands as a deal to secure more powers for Holyrood suffered another major setback.
Scottish Secretary David Mundell admitted he could end up restarting negotiations after May’s election if no agreement can be reached on the fiscal side of the deal which would see major tax and welfare powers devolved.
The sole Conservative MP north of the border suggested Deputy First Minister Mr Swinney is “chancing his arm” in fiscal negotiations over the Scotland Bill.
“It’s simply ludicrous to suggest that tax growth in England should somehow come to Scotland, whereas our position in Scotland is that if we have tax growth we keep it,” he said.
Mr Mundell added: “I don’t blame John Swinney for chancing his arm and saying: ‘We’ll keep the Barnett Formula, we won’t bear any risk and, by the way, if we get any extra money we will keep it and, actually, if there’s any extra money raised in England we’ll have a bit of that too’.
“I would describe that as having your cake and eating it, and having a bit of everybody else’s cake too.”
But comments that Scottish ministers are arguing over “a molehill” were slammed. It has been claimed there is a £3.5 billion gap between the two governments’ positions. Mr Mundell refused to clarify the size of his “molehill” when questioned by journalists in Edinburgh.
The Scottish Government has threatened to pull the plug on the Bill by recommending a veto in the Scottish Parliament. Ministers have warned they are “not bluffing” as a bad deal “would lead to systemic cuts in the Scottish budget which, over a period of a few short years, could total hundreds of millions of pounds and, over the longer term, cost Scotland billions”.
Mr Swinney said: “A substantial cut in Scotland’s budget potentially amounting to billions of pounds in the years ahead is no ‘molehill’.
“We will not sign up to a deal that systematically cuts Scotland’s budget regardless of anything that this or future Scottish Governments do.”
Mr Mundell insisted an accord could be reached with Chief Secretary to the Treasury Greg Hands in Edinburgh on Monday.
But he admitted that, if nothing is signed off before Holyrood goes into purdah on March 23, politicians would have to get back round the table after a new government is formed.
“I just don’t think the people of Scotland would forgive either government if they walked away from this agreement,” he added.