DAVID Mundell has said that the public will have to choose between new powers for Holyrood set out in the Scotland Bill or independence, as he suggested a line in the sand had been drawn on devolution.

The Scottish Secretary, who made a speech at Edinburgh University this morning to mark tomorrow's anniversary of the referendum, also criticised "intolerance and zealotry" that had arisen as a result of the historic vote.

Scotland's sole Tory MP dismissed a suggestion from his former Scotland Office colleague, the former Whitehall mandarin Alun Evans, that full tax and spending powers should be transferred to Holyrood to stave off independence saying he was "completely wrong" and that full fiscal autonomy would be to the "detriment of the people of Scotland".

Asked whether the UK Government had to get 'ahead of the curve' on devolution, he replied: "I accept that you have to reflect what people of Scotland want. What the people of Scotland have said that they want is a powerful devolved parliament as part of the United Kingdom. We've come up through the Smith Commission process with a package of measures that I believe delivers that, delivers a powerful devolved parliament but within the context of the United Kingdom.

"I think that is a package of measures that will serve Scotland well. There's been argument for individual change, including full fiscal autonomy, as the Bill has passed through parliament. I'm not persuaded by any of those arguments.

"I do agree with the point that we're not in a place where we're going to have a Scotland Bill 2017, a Scotland Bill 2018, a Scotland Bill 2019. We've reached a point where I think we've the potential for a stable devolved settlement, to which the alternative is independence. As ever, it will be up to the people of Scotland which they prefer."

The Dumfriesshire, Clydesdale and Tweeddale MP did not rule out making revisions to the Scotland Bill, which is currently making its way through Westminster, including over transferring control of abortion law to Holyrood. However, the Conservative Government is yet to accept any amendments to the Bill, which the SNP claims does not meet the recommendations of the Smith Commission.

The Prime Minister dismissed the suggestion as "bluster from the SNP" at Prime Minister's Questions on Wednesday, and challenged the SNP to provide a list of the things that were promised and not delivered.

The Scottish Secretary dismissed warnings from Deputy First Minister John Swinney who said yesterday he may block new powers for Scotland if the underlying fiscal framework did not represent a good financial deal, saying: "I think it's a message to their own supporters. I don't think for one minute they would set aside the possibility of raising £11 billion in income tax revenue, £4 billion of VAT receipts, £2.5 billion of welfare responsibilities. It's bluff and bluster."

On the issue of a possible second referendum, Mr Mundell accused the Nationalists of using "weasel words" and said the party was ignoring the Edinburgh Agreement, which was signed ahead of the referendum and stated that the result of the vote would be respected.

Insisting that Scottish independence was not inevitable, he said: "The outcome of the referendum was a decisive no vote. We've had a lot of weasel words about whether or not they plan to have another referendum. I think it's for them to set out exactly what they're playing at and what their proposal is. Is it to have another referendum within a few years? Is it that a generation or a lifetime means what most normal people would think it to mean, or is it that a lifetime can be two or three years? The ball is in the First Minister's court and she should tell us exactly what it is she's proposing."

Asked about divisions caused by the referendum, he added: "I think it is very disappointing that we've moved from what was always my concept of Scotland - tolerant, inclusive - to be quite intolerant of certain views, of there being a sort of zealotry almost among some advocates of certain propositions. I hope that it is a product of being in this post-referendum era and over time, that would subside.

"For those people who advocate Yes and independence, I'm sure they wouldn't want to start an independent Scotland with that depth of polarisation and intolerance. It's incumbent on all of us to do better and move forward in a way that's an inclusive politics, not one that smacks of intolerance and zealotry."