Scotland's powers to be limited to those already agreed

Ministers will push through plans for powers to be transferred to the Scottish parliament by the end of the summer, but will not go further than those already promised, according to the new Scotland secretary.

David Mundell, the only Conservative MP in Scotland, was promoted to David Cameron's cabinet on Monday, taking responsibility for the biggest act of devolution to Scotland since the establishment of the Holyrood parliament.

Mr Mundell said he would try to pass within months the commitments already agreed by the five main parties in Scotland. They include allowing Scottish ministers to set their own rates and bands of income tax, to spend half of the tax collected via value added tax, and to set levels of housing benefit.

Mr Mundell said: "There will be a bill to do this in the Queen's Speech [at the end of May], and we will pass it in the first parliament, before the summer recess."

But he quashed rumours that the Conservatives would offer more than has already been agreed in an attempt to shore up the union in the wake of the Scottish National party's election landslide. He said that while the government would listen to proposals brought forward by other parties - including the SNP - it would not propose any itself. And he rejected SNP proposals to gain control of all the tax levied in Scotland, known as full fiscal autonomy.

"Full fiscal autonomy is not in Scotland's interest or in the UK's interest. It would leave a £7bn black hole in Scotland's finances." But he added: "If people have amendments to our bill they should bring them forward."

The government hopes this will be the final act of devolution to Scotland this parliament, having already passed a Scotland Bill during the last parliament. Mr Mundell said: "I don't think people in Scotland want to have a constant constitutional debate."

The speed with which the government plans to move reflects concern that last week's election results could further advance the case of Scottish independence.

The SNP won 56 of Scotland's 59 seats. But a swing to the right in England meant the Conservatives won a Westminster majority - strengthening claims that the politics in Scotland are diverging from the rest of the country.

Mr Mundell agreed this was the case. "What we have had is a divergence in Scottish politics from other parts of the UK. But that in itself I don't think is a threat to the union: Scots don't want to see a constant obsession with another referendum."

He rejected the claims of Lord Forsyth, the former Tory Scotland secretary, who said his party was putting the union at risk by encouraging anti-Scottish voting at the election.

Mr Mundell said: "I rarely agree with Michael Forsyth . . . The debate in England was actually about the leftwing nature of the SNP proposals, and getting a government considerably to the left of what Labour was proposing."

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