Nicola Sturgeon pledges 'credible' tax credit plan

Ms Sturgeon said she was still hopeful that the Chancellor would be forced to reverse his plans to cuts tax credits

Nicola Sturgeon has pledged to deliver "credible, deliverable and affordable plans" to protect poorer families in Scotland from tax credit cuts.

But the first minister did not give any details on what form it would take or how it would be paid for.

Fresh amendments to the Scotland Bill mean Holyrood will have the power to fully counter any changes to tax credits made by the UK government.

Labour has already promised to ensure no families in Scotland lose out.

Scottish Labour leader Kezia Dugdale told the party's conference at the weekend that this would be paid for using income tax cash from higher earners and by not cutting air passenger duty, as the SNP plans to do.

But speaking during first minister's questions, Ms Sturgeon criticised Labour's "back of a fag packet" proposals and said her government would act to counter the changes to tax credits if they are pushed through by Chancellor George Osborne.

'Affordable plans'

She said if the cuts were not reversed in full for all families, then "what we will do as a responsible government is bring forward credible, deliverable and affordable plans to protect low-income households, just as we did on the bedroom tax.

"I think that, frankly, is a far better plan and it is far fairer for people who are affected by these cuts than back-of-a-fag-packet proposals from a party that knows it has little chance of ever being in a position to implement them."

Ms Sturgeon added: "Over these next three weeks we intend to keep up the pressure on George Osborne to drop his plans for tax credit cuts.

"Unlike Labour - who remember initially abstained in the House of Commons on this issue - the SNP have consistently opposed these cuts."

Social Justice Secretary Alex Neil told Holyrood on Wednesday that the Scottish government would "establish the most effective way to administer any top-ups to tax credits".

He added that the proposals would be properly costed before being unveiled, and that it would be made clear where any additional funding would come from.

'Higher wages'

Challenging the first minister on the issue, Ms Dugdale said: "Yesterday in the House of Commons the prime minister told working families they would just have to wait and see what happened next. Today in the this chamber, the first minister is saying exactly the same thing.

"I have listened to Nicola Sturgeon very carefully, I have listened to Alex Neil very carefully on the TV last night.

"Both have said that they will ensure that the income of those in receipt of tax credits won't fall. But that sounds a little like the Tory argument that higher wages will automatically make up the difference.

"So can I ask the first minister again - under the Scottish government's proposal, will every single family receive the same entitlement from the government as they do now?"

Ms Sturgeon responded: "I am not quite sure what it is that is difficult to understand - I don't yet accept that these cuts will take place because there is pressure building on George Osborne to reverse them.

"So I think right now that is where we should be, united, in making sure the pressure stays on the Tories. And if George Osborne does the wrong thing, then we will come forward with credible proposals to protect low income families."

Conservative MSP Annabel Goldie said Ms Sturgeon and her government should "move on, stop caterwauling at Westminster and start telling us how her government will actually use these extensive new powers".

The first minister awarded Ms Goldie "ten out of ten for sheer brass neck" after the Tory peer voted to try to stop the House of Lords from blocking tax credit cuts.