David Cameron’s claim in Edinburgh yesterday that the Scottish Parliament will become “one of the most powerful devolved parliaments in the world” is a piece of crass humbuggery.

The draft Scotland 2015 Bill refers to transferring more “powers” to the Scottish Parliament, but this does not even begin to make it a powerful parliament, devolved or otherwise.

While the Scotland Act 2012 has already transferred some tax and borrowing rights, the draft Bill extends these, including to public services and welfare. However, a tight austerity straitjacket will still remain.

As the commentary to the draft Bill states, “A fiscal framework needs to be established so that actions across the authorities in the union will deliver the fiscal mandate set by the UK government.”

That means not only that there will be limits on what the Scottish government can borrow and spend, but that if the British government cuts spending on welfare benefits then that proportion of the block grant will also be cut.

Scottish First Minister Nicola Sturgeon has already pointed out that the British government will hold a veto over key devolved powers, such as universal credit. Despite protestations to the contrary by David Cameron, that is what the draft Bill actually states.

More importantly however, the draft Bill will not give the Scottish Parliament the power to intervene decisively in the economy in the interests of working people.

Key economic decisions affecting Scotland will still be taken in the City of London, in the Bank of England and in the boardrooms of transnational corporations.

Without the power to take essential industries into public ownership, to invest in job creation and to break the austerity straitjacket, there will be no way that the basic problems affecting Scotland’s working people can be addressed.

Furthermore, no Scottish Parliament alone would be able to do anything about the massive polarisation of wealth in Britain, with over 100 billionaires living in London. Austerity for the overwhelming majority of people means a boom time for the super-rich — who salt away massive amounts of money which could be invested in the productive economy.

Tackling that issue demands change at Westminster level. With all major parties, including Labour and the SNP, committed to austerity, a mass movement for alternative policies needs to be built — one which an incoming Labour government would have to recognise. Every effort must therefore be exerted to build the People’s Assembly against Austerity, broaden its working-class base, and popularise the People’s Charter and the forthcoming People’s Manifesto.

Part of the fight for that alternative must also be winning the case for devolution of democratic decision-making and powers of taxation, borrowing and economic intervention, not only to Scotland, but also to Wales and the English regions, with the establishment of English regional assemblies elected by single transferable vote in multi-member constituencies.

Cameron’s draft Bill is silent on the consequences for England and Wales of the extension to Scottish devolution. But a programme of progressive federalism across the nations of Britain and the English regions is the best way of avoiding fragmentation of the working class along national lines, while offering the best opportunity for the working class to intervene decisively in the economy.

Such a scenario also offers the best means of countering arguments about Scottish MPs voting on English issues at Westminster. The British Parliament should primarily be concerned with redistribution — from rich to poor, across the nations and regions of Britain and in light of social need.

It should be a federal institution, also elected by single transferable vote in multi-member constituencies, with powers over currency, interest rates, banking, trade, foreign policy and defence.

With working-class mobilisation and the adoption of progressive anti-monopoly policies, such a federal parliament and devolved institutions will have the scope to become really powerful, based on mass participation.