David Mundell, secretary of state for Scotland, says it will be up to the sector to scrutinise the devolution of further powers once they are in place

Scotland’s third sector will play a “critical” part in making the Scotland bill a success, the secretary of state for Scotland has declared.

Addressing the Scottish Council for Voluntary Organisations’ (SCVO) Tackling Poverty with New Powers conference on Wednesday, David Mundell MP said it is up to the sector to scrutinise the devolution of further powers once they are in place.

Mundell, the only Tory MP elected in Scotland, used his platform as a guest speaker at the Edinburgh meeting to outline the powers that are being transferred.

This really is by any fair minded evaluation a substantial devolution of power

David Mundell

Focussing on welfare, he described the welfare powers agreed by the post-referendum Smith Commission and delivered by the Scotland bill as “significant”.

The Scottish Government will be responsible for welfare spending worth £2.5 billion, he said, and will have the power to tailor policies to meet local circumstances and needs across a wide range of benefits. Those he singled out were attendance allowance, disability living allowance, personal independence payment and carer’s allowance.

As for the often controversial universal credit, Mundell said although it will remain a reserved benefit the Scotland bill will give Scottish ministers flexibility over aspects of it – including being able to vary the frequency of payments, the ability to decide whether housing costs payments can be made direct to a landlord and whether payments can be split between couples.

Outside of welfare, Mundell said the Scottish Parliament would be given “unprecedented” tax raising powers, control of VAT revenues of £4.5bn and greater equal opportunities powers – including the power to legislate in relation to socio-economic rights and to introduce gender quotas on public authority boards.

“This really is, by any fair minded evaluation, a substantial devolution of power,” Mundell said.

“The wide scope that will be for policy makers to shape and tailor the social landscape of Scotland should not be underestimated.”

The effect of the recommendations, he said, is the creation of more shared space in the system of government and that requires close working between the Scottish and UK governments.

“Your sector does need to scrutinise that and your involvement will be a critical part of making it success,” he continued.

“The Scottish Government has a productive dialogue with SCVO and a wide range of third sector partners.

“I know that SCVO’s membership has and will continue to scrutinise the UK government, not just in relation to the devolution of further powers but across those subjects that will remain the responsibility of the UK parliament.

“A collaborative approach is essential given that we are creating more shared space than has ever been the case in the past.

“Neither the UK or the Scottish governments have a monopoly on ideas and the third sector and others will be vital to making it a success.”

Mundell pointed to the “often overlooked” Scotland Act 2012 as a successful precedent of the two governments working in partnership.

However, he warned the bill will also transfer responsibility and accountability to the Scottish Government saying it will have to make decisions on some of the “most emotive and important” decisions effecting Scotland.

He added: “I’m sure organisations in this room will want to know what the plans are for the future and how they can get involved in the debate.

“I want to see all parties, I want to see civic Scotland involved in the debate – not just about tax but about how to use these powers – whether we change benefits, whether we adapt existing benefits, whether we create new benefits and you have a very important part to play in that debate.

“While I’m happy to be held to account for what is or isn’t in the Scotland bill once we get that bill through parliament, once we have it enacted, we have got to move the debate on to be about how these powers can be used directly for the direct benefit for the people in Scotland and to meet the objectives that you so dearly hold to heart.”