Top young Tories have backed the Scottish Government's calls for full tax raising powers in a book billed as the way forward for the Conservative Party.
Their support will add to increasing pressure on David Cameron’s Government, which has steadfastly refused the demand.
The MPs join a growing number of English Conservative politicians calling for a new deal with Scotland.
Many claim Scotland receives too much money per head of population, which Scottish politicians have furiously denied.
Last month the Prime Minister announced plans to look again at the West Lothian Question, under which Scots at Westminster vote on issues that affect only English voters, after pressure from English MPs.
But the Coalition has refused all calls for so-called full fiscal autonomy.
Now, however, five rising stars of the Tory party have added their voices to the demand.
They include Dominic Raab a former chief of staff to Attorney General Dominic Grieve.
Another is Liz Truss, who led a successful campaign to save RAF Marham in Norfolk earlier this year at the same time as the MoD announced the closure of two Scottish airbases.
The call comes in a new book titled After the Coalition, which is designed to shape Tory policy after the next General Election, when many Conservatives believe they will have shaken off their LibDem partners.
The MPs who wrote the book have devoted an entire chapter to Scotland – entitled Scotland: Contract for Britain. It calls for a new relationship between the country and the rest of the UK. Scotland should raise all its own taxes and give an annual payment to Westminster to cover national expenses, including diplomacy and defence, they advocate.
Controversially, the MPs say another element of the package “would include an end to the UK subsidy to Scotland, with grants and funding to Scotland replaced by local funding in line with the new fiscal powers”.
They also call for future allocation of revenue from North Sea oil to be referred to a “three person arbitral panel”.
The Scottish Government said it agreed with the Tory MPs views on fiscal autonomy but denied claims Scotland was subsidised by Westminster. A spokesman said the proposals showed “more evidence of Tory division on the constitution”.
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