FIRST Minister Nicola Sturgeon and the Scottish TUC accused Westminster yesterday of “watering down” powers promised to the Scottish Parliament after the Con-Dems unveiled new devolution legislation.

Prime Minister David Cameron revealed the plans, which were promised last year before the No vote in Scotland’s independence referendum.

Outlining draft clauses designed to underpin proposed laws based loosely on the recommendations of the Smith Commission, Scotland Minister David Mundell claimed that Scotland would have one of the most powerful devolved parliaments in the world.

He said the powers, which include the ability to set income tax rates and thresholds, would be implemented regardless of which party is in power after May’s general election.

But First Minister Ms Sturgeon said: “Too much of what the Prime Minister has set out imposes restrictions on the recommended devolved powers and would hand a veto to UK ministers in key areas.

“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.”

She said other limitations meant that “this cannot, under any interpretation, represent the meaningful progress on the devolution of the powers we need to design a social security system that meets Scotland’s needs.

“The paper confirms that the Scottish government will still have to work within the framework of austerity being imposed by the UK government.”

Communist Party general secretary Robert Griffiths ridiculed the plans, saying the “draconian fiscal framework” laid out in yesterday’s legislative proposals would “devolve the responsibility for enforcing austerity.”

And Scottish TUC general secretary Grahame Smith slammed the coalition for not allowing prior access to the legislation’s final details.

“It is unacceptable that the Scottish Parliament should require Westminster approval to create new benefit entitlements in Scotland,” he said.

“Given that the STUC was underwhelmed by the totality of the Smith Commission proposals, this further watering down of the promise that was made to voters in Scotland is unacceptable.”

Mr Griffiths said the proposals should devolve real powers to Scotland to enhance public services and intervene in the economy in the interests of working families.