The Scottish National Party says it will push for full tax and spending powers, tabling an amendment for full fiscal autonomy and increased powers for Hollyrood in the Scotland Bill currently making its way through parliament.
During Scottish questions in the House of Commons yesterday, David Mundell, Secretary of State for Scotland, attacked the SNP over its ambiguous demands for fiscal autonomy.
"It is the Scottish National Party who need to be upfront as to what their proposals are for taxation and spending. They used to tell us that they want full fiscal autonomy but now they don't seem to want to do that," said Mundell.
"It's for them to answer the questions as to where the additional spending in Scotland will come from."
The Scotland Minister, the Conservative Party's only MP north of the border, said he welcomed an amendment to the Scotland Bill for fiscal autonomy during the committee stages.
"My suspicion, however, is that it [the SNP] is asking for something it does not really want and that it will complain when it does not get it," he added.
SNP MP Stewart Hosie insisted Mundell was wrong about his party's position.
It emerged last night that the SNP had called Mundell's bluff in tabling the amendment.
In a statement to IBTimes UK, the party said: "The SNP amendment would give the Scottish Parliament the legislative competence to remove the reservation on taxation, borrowing and public expenditure, allowing the Scottish Parliament to legislate to deliver full fiscal autonomy.
"The SNP will also propose amendments for further priority powers at later stages in the bill, including powers over tax, setting the minimum wage and taking responsibility for welfare decisions."
SNP Westminster Leader Angus Robertson MP said: "Scotland needs significant new powers over our economy, job creation, welfare, wages and living standards if we are to make the most of our nation's potential. The proposals in the Scotland Bill do not go far enough.
"That is why the SNP has set out priority changes to the Scotland Bill to devolve responsibility for taxes, such as National Insurance, setting the minimum wage and protecting key parts of the welfare state."
Fiscal autonomy for Scotland was outlined by the SNP in its election manifesto but the party appeared to have backtracked on the issue. A number of the party's MPs raised doubts over the economic viability of fiscal autonomy which would withdraw funds to Scotland provided by the Barnet formula.