There is growing grief, grudge, grievance, backlash and vitriol in England in reaction to Scottish devolution, according to Henry McLeish, the former first minister, who called yesterday for England to have its own voice.

There is growing grief, grudge, grievance, backlash and vitriol in England in reaction to Scottish devolution, according to Henry McLeish, the former first minister, who called yesterday for England to have its own voice.

He argued for more taxation powers and responsibility for Scotland, though he warned that would make the nation's finances more vulnerable to the tax revenue impact of economic downturns.

The former Labour MP, MSP and first minister from 2000 to 2001, who steered the Scotland Act through Westminster, was appearing before the Calman Commission on devolution reform when it met at Holyrood yesterday morning.

He said the tax powers for which he argued in the 1990s, allowing the basic rate of tax to rise or fall by 3p, will not be used because they are too blunt, but he encouraged Sir Kenneth Calman's commission to find ways to build incentives into Holyrood's taxation powers that would boost Scottish growth and competitiveness.

Mr McLeish was revealing about difficulties he had in his relations with Whitehall during his time in Bute House. He said there were "rough and tough meetings" as UK ministers fought to stop the introduction of free personal care for the elderly, fearing that would spill over into demands for similar spending south of the border.

He said Scotland's relations with Europe were a source of tension. Ministers and civil servants in London were "pretty hard and pretty rigid" about the UK Government's role in Brussels politics, he said, and "aghast" at his ambitions for the Scottish administration to play its own part with similar regions of Germany and Spain. The late Robin Cook, who was Foreign Secretary, understood the politics of what Mr McLeish was trying to achieve, but others were opposed.

Mr McLeish told ministers he believes the Westminster administration should be more flexible on welfare benefits. Although he said he opposes the SNP policy on replacing council tax with a local income tax, he said the UK Government should free up £400m in council tax benefit funds, if that is the will of the Scottish Parliament.

These are the changes that could come about after 10 years, he said, but the next 10 to 30 years should see Scotland continuing to grow more autonomous within the UK. He suggested a federal form of government, for which Liberal Democrats have long argued.

He said this would address the growing resentment in England about devolution. "They need a voice," he said. "I can't believe that, with an English population of 50 million people, it remains the most highly centralised country in Europe if not worldwide, and there's no voice.

"Our debate could be a hint to the English that they need a voice. But that voice has to come from Westminster. The asymmetric view of devolution can't be sustained. We must move towards some balanced framework, a quasi-federal solution, rather than the English feeling aggrieved. At the end of the day, their grief and their anger spills over on to us."