MUCH anticipated plans for more powers for Scotland following the referendum fall short of what was promised, according to the Scottish Government.

The UK government published the Scotland Bill, which David Cameron said would meet the Smith Commission recommendations in full, but which Deputy First Minister, John Swinney, said represents “a broken promise.”

The bill includes enabling the Scottish Parliament to set the thresholds and rates of income tax in Scotland and keep all the money raised in Scotland.

It will give the Scottish Parliament half of VAT revenue raised in Scotland and devolve Air Passenger Duty and the Aggregates Levy to the Scottish Parliament.

The Scottish Parliament would get around £2.5 billion worth of new welfare powers.

Mr Swinney said there are several areas where it fails to deliver including Westminster still having vetoes, including over Universal Credit changes.

He said there are restrictions on who carer's benefit can be paid to and no power to create new benefits in specific areas.

Mr Swinney said: “Less than a fortnight ago, the prime minister came to Edinburgh and pledged to the people of Scotland to deliver the Smith Agreement in full. Today, it’s plain to see that promise has been broken.

“Delivering the Smith Commission’s recommendations was the minimum the UK Government had to deliver. “

The UK Government said it had met the Smith proposals at the earliest opportunity.

David Mundell, Scottish secretary, said: “The Government has moved quickly on day one of the new Parliament to deliver on our commitment to make Holyrood one of the most powerful devolved parliaments in the world.

“Scotland will still hold on to the benefits of being part of the UK that people voted for in the referendum last September.  Sharing risks and resources  with the rest of the UK is good for everyone in the UK when it comes to vital matters such as pensions, currency, trade and national security.”

Labour said it would seek to amend the Bill to help those hit hardest from welfare cuts.

Shadow Scottish Secretary, Ian Murray, said: “Labour amendments to the Scotland Bill will give the Scottish Parliament the power to top up UK benefits, and create new benefits of our own.

“Scotland will have the powers to defend the vulnerable against Tory austerity whilst retaining the UK wide pooling and sharing of resources offered by the Barnett Formula.  It’s about simple fairness.”