Proposals to devolve more powers to Holyrood gives UK ministers an effective veto over Scottish Government welfare policy, including the ability to abolish the so-called “bedroom tax”, Nicola Sturgeon has claimed.
A major political row broke out between the First Minister and the UK’s Scottish Secretary Alistair Carmichael and Chief Secretary to the Treasury Danny Alexander over a clause in the legislation to enact the cross-party Smith Commission.
On welfare, the document says Scottish ministers and the Secretary of State must consult the other party on any decisions.
However, it adds the Scottish Secretary must give “his or her agreement as to when any change” comes into force.
Mr Carmichael said the First Minister was “wrong” to say the clause meant there would be any veto and Mr Alexander insisted the Scottish Government would have the full welfare powers outlined by Lord Smith.
However, Ms Sturgeon said there appeared to be a “significant watering down” of what was promised by the Smith Commission, which she was highly critical of despite the SNP signing up to it.
She said: “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.”
Mr Carmichael said anyone attempting to use the powers to “thwart” the effective working of the two governments “demonstrates a fundamental lack of respect for the democratically expressed wishes of the Scottish people from the referendum.”
He added: “There is no veto. It’s a mature conversation between two governments. Federal governments across the world manage it all the time.
“I’m sure it’s within our range of responsibilities. If you are to accept the (veto) analysis then you would have to accept that a veto would pull in the other direction as well and I just don’t see that as sensible or workable.
“It’s not what is intended and it’s disappointing but not surprising that it is being suggested.”