Nicola Sturgeon calls for more devolved powers

The Scottish government has demanded a new round of devolution discussions, saying last week's general election result showed powers already promised by the UK government "do not go far enough".

In a parliamentary statement, Nicola Sturgeon, first minister and leader of the triumphant Scottish National party, said the election had left the Conservative party - which won a UK parliamentary majority - with "no mandate" in Scotland.

Ms Sturgeon's call sets the ground for the first confrontation between Edinburgh and London in the new political era ushered in by the SNP's crushing victory in Scotland last Thursday.

David Mundell, the UK secretary of state for Scotland, said this week the new Conservative government would rapidly implement a cross-party deal on powers brokered last year by Lord Smith of Kelvin, but would not go further.

Ms Sturgeon, whose party won 56 of Scotland's 59 Westminster seats, insisted the election showed a "significant proportion" of voters were not satisfied with the Smith package, which would allow Edinburgh to set the rates and bands of income tax and give it control over around £2.5bn worth of welfare spending.

"If the prime minister and his government mean what they say about respecting the outcome of the election in Scotland, they must now agree with us a process that looks again at the Smith Commission proposals, with a view to extending devolution even further," Ms Sturgeon said.

"That must be a process that is made in Scotland - and one that involves wider Scottish society," she said, adding she would make the case directly to David Cameron, UK prime minister, when they meet for the first time since the election this week.

Mr Mundell, who was promoted to Mr Cameron's cabinet on Monday, said he would aim to pass legislation on the Smith proposals within months. 

But Mr Mundell said the UK government hoped this would be the last act of devolution to Scotland this parliament. "I don't think people in Scotland want to have a constant constitutional debate," he said.

The SNP has called for "full fiscal autonomy" from the UK for Scotland, but Ms Sturgeon made clear this was not a priority amid an oil price slump that experts say would mean an annual government funding gap of more than £7bn.

Instead, Ms Sturgeon said she would first seek power over "employment policy, including the minimum wage, welfare, business taxes, national insurance and equality policy".

In a move to build momentum for more powers, Ms Sturgeon on Wednesday signed an agreement with the Scottish Trades Union Congress to campaign for "full devolution" of powers over the minimum wage, trade union and employment law, health and safety law and equalities legislation.

The STUC also said it would work with the Scottish government to oppose further austerity.

"The STUC strongly believes that programme of the new UK government will inevitably result in a weaker economy and a significant increase in inequality," said Grahame Smith, STUC general secretary.

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