Scottish Liberal Democrat leader Willie Rennie says it is very refreshing to be having a debate on powers the Scottish Parliament will have in the future. 

Mr Rennie says his party is against the Tax Credit cuts and he wants to move towards a low taxation high wages economy, but in the mean time the Tax Credit regime must remain. 

He says the House of Lords spoke up for working people, the new champions of the working people are there and not in the Conservative party. 

The Scottish Lib Dem MSP says he will vote against the Scottish government's amendment as it is clear Scotland will have the powers to implement Scottish Labour's plan. 

Mr Rennie says he is deeply concerned that 250,000 families in Scotland and 300,000 children would be affected by the proposed cuts and believes that the priority should be blocking any proposals that leave these people, among three million on low incomes across the UK that would be affected, more than £1,000 worse off, pushing more families into poverty. 

He urges the UK Government to listen to the House of Lords and to come back with plans to balance the books that do not attack working families already struggling to get by; 

The Leader of the Scottish Liberal Democrats says if all else fails, Scotland will be able to use its welfare powers to assist people affected by the cuts, but believes that this course of action remains an inferior solution compared with stopping the tax credit cuts wholesale across the UK. 

Scottish Lib Dem Leader Willie Rennie says cuts are being proposed by the UK Conservative administration despite them not being in its manifesto and the Prime Minister explicitly ruling out tax credit cuts if the Conservatives won the general election. 

Mr Rennie believes that economic reasoning is now being used as a pretext to mask ideologically-driven welfare cuts, many of which were blocked by the Liberal Democrats in the previous UK administration.   

Labour MSP James Kelly questions the competency of the SNP amendment given that Mr Neil had contradicted it by agreeing Scotland would now have the power to implement Labour's proposaal

Mr Fraser says the SNP must now reveal what they will do on the issue of Tax Credits.

Scottish Conservative MSP Murdo Fraser says he welcomes Jackie Baillie to the front bench, replaced by "the real leader of Scottish Labour Neil Findlay". 

Mr Fraser says he hopes she will continue to vote with the Scottish Conservatives, as she did in the Trident debate. 

He goes on to says he was in Perth guising at the weekend and saw a number of ghouls and ghosts and he wonders if the fact Scottish Labour were having a conference there was a coincidence. 

Mr Fraser welcomes proposals to reduce expenditure while seeking to build a high wage, lower tax and lower welfare society and anticipates announcements in the Autumn Statement on what more can be done to ensure that changes are applied in the fairest way possible. 

The Scottish Conservative MSP says Scotland's children would be best supported by growing up in a thriving economy with high levels of employment, good-quality education and appropriate provision for childcare, and calls on the Scottish Government to reject proposals that would increase the burden of taxation in Scotland and put the country at a competitive disadvantage relative to other parts of the UK. 

Scottish Conservative MSP Murdo Fraser asks that the motion be amended to recognise that spending spiraled out of control under the previous UK Labour administration as nine out of ten working families with children became eligible for tax credits.

Mr Fraser believes that this growth went far beyond what that was envisaged when the current system of tax credits was introduced and has contributed to the subsidising of low wages.   

Mr Neil says the amendments to the Scotland Bill, tabled today at Westminster, will give the powers to the Scottish government to do what Labour is proposing. 

The minister says these powers were not there before today. 

He says the responsibility for APD will not be devolved until 2018. 

Labour have not done their homework and have come up with their plan on the back of a postage stamp.

Scotland's Labour leader Kezia Dugdale said her party would raise taxes for higher earners to pay for improvements to education. 

She also told her party conference in Perth that a Labour government at Holyrood would reverse tax credit changes affecting working families. 

Ms Dugdale insisted "ordinary" tax payers need not pay more for her plans. 

She said her education proposals would be paid for by asking those "very top earners" to pay "a bit more tax". 

The MSP outlined the party's "Fair Start Fund" which would be linked to every child from a poorer family. 

Social Justice Secretary Alex Neil says Tax Credits are too important to be left under the control of the Conservatives at Westminster. 

Mr Neil says three weeks from today we will find out whether George Osbourne will go ahead with his Tax Credit cuts. 

The minister says the Scottish government will not stand by idly if he does.

Mr Neil says Labour's sums simply do not add up and that it plans to pay for its policy using money that it has previously earmarked for education. 

The SNP MSP agrees the Scottish government will set out credible, costed proposals to further mitigate the Conservative welfare cuts following the comprehensive spending review. 

Social Justice Secretary Alex Neil says the Scottish government fought the UK government's cuts while Scottish Labour got into bed with the Tories.

Social Justice Secretary Alex Neil says he finds it is incredible Jackie Baillie voted to spend £167bn on warfare and not welfare on yesterday's debate on Trident and still remains in post. 

Mr Neil continues the attack by saying, during the independence referendum, Jackie Baillie was opposed to social security powers coming to Holyrood.

Social Justice Secretary Alex Neil, uses his amendment to ask that the bill welcomes the action that the Scottish government has already taken to offset UK government welfare cuts, including mitigation of the so-called bedroom tax and the establishment of the Scottish Welfare Fund.

Mr Neil says there is currently no proposed power in the Scotland Bill that would enable the Scottish government to restore all tax credits and calls on all parties in the House of Commons to vote for an amendment that would devolve full responsibility for child and working tax credits to the Scottish Parliament at the report stage of the Bill.   

SNP MSP Fiona McLeod says that power is only in relation to severe hardship and does not apply if the benefit is not there. 

Ms Baillie says SPICE says the top up will be possible, as does the UK government. 

Ms Baillie says it is shameful that the SNP are attempting to play a red herring on the issue of restoring Tax Credits. She says the SNP claim it cannot be done, but it can. 

The Labour MSP says the powers coming to Holyrood, in clause 21 of the Scotland Bill, will give Holyrood the power to do it. 

She cites the Scottish government will be able to provide extra money to reserved Tax Credits.

The government were dealt a major blow after the House of Lords voted to delay tax credit cuts and to compensate those affected in full last month. 

Peers voted by 289 votes to 272 to provide full financial redress to the millions of recipients affected.

They earlier inflicted a second defeat by backing a pause until an independent study of the impact was carried out.

George Osborne said he would heed the outcome of the vote, but said it raised "constitutional issues".

Scottish Labour's finance spokesperson says in a few weeks families were due to receive letters on their doorstep telling them how much they would lose due to Tax Credits cuts. 

Ms Baillie says she never thought she'd say it but, "thank heavens for the House of Lords".