MSPs back new tax powers for Scottish Parliament

Plans to give the Scottish parliament "meaningful taxation powers" have passed their latest hurdle at Holyrood.

The Scotland Bill will give more powers to the Scottish Parliament in a bid to make it more accountable.

MSPs voted today to allow Westminster to continue the passage of the bill, but it will be brought back to Holyrood so that any amendments can be debated in Scotland.

The move has the backing of Labour, Lib Dems and Conservatives, but the SNP has said it does not go far enough in devolving power.

MSP Pauline McNeill said the Bill would give "meaningful taxation powers" and described it as "a decentralisation from the UK Treasury".

She said: "The committee examined in huge detail the criticism made of the Bill and in doing so brought about a rounded set of recommendations which I believe enhance the Bill further if enacted."

Labour MSP Pauline McNeill described the SNP's plans as "full fiscal fairyland", and said the reduction in the block grant - proposed in return for more control over taxation - was the "important issue to get right".

She added: "This will not be the final word. After Westminster we will look at this again in a future Parliament and it is correct to do so.

"If we do that we will have served the people of Scotland well."

The legislative consent motion debated in Holyrood today follows the publication of a report by Holyrood's specially-convened Scotland Bill Committee, which was set up to scrutinise the proposals.

The committee's report outlined a series of recommendations to amend the Bill, including the doubling of proposed borrowing of 2.2 billion to 5 billion.

External affairs minister Fiona Hyslop urged MSPs to vote in favour of another debate on the Scotland Bill before it can be passed for Royal Assent.

She said: "We regret that this Bill is a missed opportunity, it could do so much more to benefit our nation with greater transfer of financial responsibility to achieve economic growth and jobs for Scotland.

"We have continuing concerns about fundamental flaws in the financial provisions, which will need serious surgery to work.

"Today is an opportunity to make clear that we need to consider the Bill again in our next session and further consent will be needed once Westminster shows how far it will go to improve the Bill."