Ahead of the first day of the committee stage of the Bill when MPs in the Commons will scrutinise the legislation line by line, the Scottish Secretary David Mundell made clear the government will reject amendment 'that is not good for Scotland'.

Scottish Deputy First Minster John Swinney has said FFA is the best route to fulfilling Scotland's potential. His SNP party has tabled an amendment to the Scotland Bill which would see FFA implemented at a time of Holyrood's choosing.

Mundell said the proposed change would be ‘a full fiscal shambles that would cost every family in Scotland around £5000’.

Speaking ahead of the committee stage, Mundell said: ‘The Prime Minister has made it clear that the government will carefully consider any changes to the Bill that are sensible. An amendment that kills off the Barnett formula and ends the sharing of resources across the UK is about as far away from sensible as one can get.’

Mundell said the Institute of Fiscal Studies has estimated that fiscal autonomy would mean Scotland having almost £10bn less to spend by the last year of this Parliament.

‘That is not good for Scotland. That is why the government will stand up for Scotland and resist the amendment,’ Mundell said.

As originally proposed, the Scotland Bill will give the Scottish Parliament new powers including control over income tax rates and bands, a proportion of the VAT raised in Scotland and air passenger duty.

The SNP amendment would give the Scottish Parliament the legislative competence to remove the reservation on taxation, borrowing and public expenditure, allowing it to legislate to deliver FFA in the future.