Lords call for halt to Scotland Bill

Progress of the Scotland Bill should be paused until some financial details are clarified, a House of Lords committee has warned.

The bill, designed to implement the Smith recommendations for devolution, is not yet clear enough on the rules around tax and spending powers because details of the negotiations between the UK and Scottish Governments on Scotland's funding have not been published, according to peers.

The Economic Affairs Committee said the bill was progressing with “undue haste'' and should be put on hold until the fiscal framework for devolution has been published.

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Peers also said the UK and Scotland should agree rules on borrowing, with a “maximum” Scottish debt.

A pledge in the bill that no country should be made worse off by devolution would be a "recipe for continuing conflict", the peers added.

And they argued that the Barnett Formula, used to calculate funding for devolved governments, should be replaced.

Chair of the committee Lord Hollick said: "The Scotland Bill has the potential to fundamentally change the UK and impact on us all both politically and economically. It is crucial that what is proposed is stable and sustainable.

"Parliament is being asked to pass the bill before we are told full details about the fiscal arrangements that will underpin this new era of devolution – that cannot be right.

"We are calling on the progress of the bill to be halted until the details are agreed and published.

"That would at least allow peers the opportunity that MPs were denied of scrutinising and amending this important legislation as informed participants."

The UK government said fiscal framework discussions were constructive, while the Scottish government said it would only approve the bill once it had a “fair fiscal framework agreement".

Deputy First Minister John Swinney told BBC Radio Scotland he didn't agree with many of the recommendations from the Lords, including removal of the Barnett formula of funding for Scotland.

"I would be against there being a delay in the House of Lords because I think fundamentally we need to make progress on the Scotland Bill so that the Scottish Parliament can take its final decision on whether the bill is to be adopted before we get to the Scottish Parliament elections next May.

"I'm making my position crystal clear. The fiscal framework has to be fair to the people of Scotland and consistent with the Smith Commission report before I will recommend to parliament that it gives its legislative consent to the Scotland Bill," he said.