DAVID Mundell has admitted he doesn’t know how to resolve the stalemate between London and Edinburgh over Brexit and devolved powers.
The Scottish Secretary said a “third way” was needed but he was “not clear” what it was.
His comments came after a meeting with SNP Brexit minister Michael Russell on Wednesday led nowhere, and SNP Westminster leader Ian Blackford said the talks were doomed.
The Scottish and UK governments have been trying for months to agree on the distribution of devolved powers repatriated from Brussels next year.
Under the EU Withdrawal Bill, most of the 111 devolved areas would go to Holyrood, with 24 temporarily retained by Westminster pending the creation of UK-wide common frameworks to protect the internal market.
Nicola Sturgeon has insisted these frameworks must be agreed by consent, not imposed.
However the UK government says that would give Scotland a veto over frameworks affecting England, Wales and Northern Ireland, something without parallel in devolution.
Briefing the media at Holyrood, Mr Mundell said he still hoped a deal was possible, but added it was now “self-evident” it might not happen.
He said: “It’ll need to be something that’s not currently on the table, because we are clear that we can’t just accept that there are no arrangements [for devolved areas] in the Bill, and we can’t accept a veto for the Scottish parliament over UK-wide arrangements.
“This Bill is not a basis on which to change the current constitutional settlement.
“Why we can’t sign up to an absolute consent arrangement that doesn’t currently exist
“I think [for it] to be resolved we will need some third way. I’m not clear what that is.”
Earlier, UK constitution minister Chloe Smith admitted to MSPs the list of 24 powers could “evolve” and be extended by London, though this would “normally” involve Holyrood’s consent.
Mr Mundell also repeatedly refused to rule out Westminster imposing Brexit law on Scotland against the express wish of Holyrood - a first for devolution.
At First Minister’s Questions, Nicola Sturgeon said that attitude made a deal harder.
She said: “In the absence of such a commitment, how can we be expected to take the UK Government at its word when it says that it would respect our decisions on consent when it comes to any orders that might be laid at a later stage?”
If, as is now almost certain, no deal between London and Edinburgh is done on the Brexit legislation, MSPs are expected to debate it on Tuesday May 15, the day before the final stage of the EU Withdrawal Bill, the Third Reading, takes place in the House of Lords.
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