SNP ministers would have borrowing limits raised while extra protections would be rolled out to ensure the UK Government does not undermine devolution, under radical plans unveiled by Labour.
Gordon Brown has finally published his devolution blueprint for the United Kingdom as part of Labour’s commission on the UK’s future.
Under the plans, Holyrood would gain powers to join some international schemes such as Erasmus while control over job centres would be localised.
It also advocates for devolution within Scotland such as elected mayors and pushing more powers to councils.
Failing to reform the centre of the UK was the “missing element” of Labour’s devolution plans, Mr Brown said.
The UK-wide proposals radically shift power out of Westminster and into the regions of England.
Plans to abolish the House of Lords and replace it with a democratically-elected assembly of nations and regions were announced by Scottish Labour leader Anas Sarwar in July.
For Scotland, a Labour UK government would strengthen protections over UK legislation in devolved areas, such as the controversial Internal Market Act – by rolling out further safeguards for the Sewel convention, which dictates Prime Ministers should not act in devolved areas without consent form the nations.
The document states that the assembly of regions and nations, while losing the Lords' power to hold up legislation, would be able to enforce the Sewel convention being "one of the protected constitutional laws which require the consent not just of the House of Commons but of the reformed second chamber also".
It adds: "This entrenches the convention as part of the UK's territorial constitution.
"It will succeed where the present legislation has failed in ensuring that the powers of the devolved legislatures cannot simply be overridden by the Government of the day."
Sir Keir denied it would give Holyrood a veto over UK legislation.
He said: "The report is quite careful about what it says about the Sewel convention.
"What we want to ensure is that the constitutional arrangements and the arrangements of devolution are properly respected.
"I don't think they have been properly respected in recent years.
"This is a recommendation that allows us to give the respect that is due to those instruments and conventions including the Sewel convention."
The plans set out a consultation being launched on expanding the limited borrowing powers of the Scottish Government after criticism the set-up is not fit for purpose following the pandemic.
Mr Brown said how much the powers are extended by would be "a matter for the new chancellor in the event of a Labour government".
He added: "Obviously you've got to look at the UK position and you've got to look at the Scottish position – you've got to look at them both at the same time.
"One of the first acts of a Labour government will be to discuss these issues."
Scottish Conservative chairman Craig Hoy has argued that no change is needed to Scotland's devolution agreement.
He said: “The present settlement strikes a good balance and people in Scotland want their two governments to work together, especially when there are much more pressing issues to be focusing on, such as the global cost-of-living crisis and our struggling public services.
“While Labour try to meet Nicola Sturgeon half way on the question of independence, only the Scottish Conservatives are standing up to the SNP and building a real alternative, focused on people’s real priorities.”
Scottish Greens' co-leader, Patrick Harvie, claimed "Labour is more concerned with making sure real power stays in Westminster, regardless of how people in Scotland vote".
He added: "The report does not live up to the urgency of the situation we are in or offer the bold and transformative change that is needed."
SNP depute leader Keith Brown criticised Labour for the plans.
He said: "Ironically, a report which claims to be about strengthening devolution in many cases actually looks set to undermine it.
“The fact is, Labour are now a pro-Brexit party with a pro-Brexit leader. They are completely at one with the Tories when it comes to ignoring Scotland’s vote to remain in the EU, and ignoring the democratic will of the people of Scotland to determine their own future – and nothing in these proposals changes that."
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