Senior Scottish ministers have hit out against the ‘limited powers' of fiscal devolution promised under the Smith Commission, amid signs of convergence between the spending plans of the Labour Party and the Scottish Nationalist Party (SNP).

In a speech made at Heriot-Watt University in Edinburgh yesterday, deputy first minister John Swinney said the Scottish Government's approach to investment in jobs and services was ‘in stark contrast to the path adopted by Westminster'.

Mr Swinney contrasted Autumn Statement plans that he said would mean a £15bn cut to Scotland's public services budget over five years compared to 2014/15 with Holyrood proposals to see UK public spending enjoy a 0.5% real terms increase.