Danny Alexander has said the UK Parliament should be able to consider the Scotland Bill’s accompanying fiscal framework before it becomes law.
The former chief secretary to the Treasury suggested MPs and peers have the chance to see the funding deal before the legislation completes its passage through both Houses.
He also advocated keeping the Barnett Formula, used to calculate public spending levels in Scotland, Wales and Northern Ireland, claiming any other needs-based arrangement would have materially similar outcomes.
Mr Alexander, who is to be knighted for public and political service, was giving evidence to the House of Lords economic affairs committee yesterday.
It was his first formal appointment at Westminster since losing his seat to the SNP’s Drew Hendry at the general election in May.
The ex-Inverness, Nairn, Badenoch and Strathspey Liberal democrat MP, said: “It is important before the bill has completed its passage that parliament has the chance to see and consider the fiscal framework.
“In a way, the fiscal framework that lies behind the bill is at least as important as what’s on the face of the bill.”
Private negotiations – described as “constructive” – are ongoing between the Scottish and UK governments over the terms of the framework.
Following talks between Scottish Secretary David Mundell and Communities Minister Alex Neil last week, the UK Government said it expected a deal by the end of the month.
But Mr Neill said agreement would depend on amendments to the bill, which have still not been published.
Last month, First Minister Nicola Sturgeon said MSPs would only support the Scotland Bill – which devolves further powers, including over income tax, to Holyrood – if the accompanying deal on Scotland’s funding was fair.
On the Barnett Formula, Mr Alexander said the “lengthy and rancorous” process of changing it would be a “waste of time, effort and emotional energy”.
He added: “I would defend the retention of the Barnett Formula. My party changed its view on that. I don’t think any other party has argued for changing it.”