SNP backs Scotland Bill powers

THE SNP has backed plans to hand more tax-raising and borrowing powers to Holyrood, despite concern among Nationalists over the key measures of the Scotland Bill.

MSPs from all four main parties at Holyrood last night supported the legislation, which is now passing through Westminster. A specially-convened committee of MSPs, which was set up to scrutinise the proposals, last week called for the bill to go further than currently planned.

Conservative deputy leader Murdo Fraser said the SNP's support showed that party was "all at sea" on the constitution.

He added: "SNP voters who support independence will wonder what is the point of a party which is now prepared to swallow these Unionist proposals."

The new legislation would see income tax effectively cut by 10p in Scotland, with Holyrood then responsible for raising it back up to the required level in line with need.

First Minister Alex Salmond has claimed the bill has a "deflationary bias" which will damage Scotland, but Nationalists last night voted through a motion which calls for the final proposals to be brought back to Holyrood before final approval.

"There is still time for changes to make this a Scotland Bill that is really worthy of that name," constitutional affairs minister Fiona Hyslop said.

A call by Tory backbencher Margaret Mitchell for a referendum on the tax-raising powers was voted down. The bill is backed by Labour, the Liberal Democrats and the Tories. The committee's report last week called for the borrowing limit to rise from 2.2 billion to 5bn.