FUTURE dealings between the UK and Scottish Governments should be "reset" to produce a post-referendum relationship based on co-operation and not grievance, Alistair Carmichael, the Scottish Secretary, has insisted following a meeting of the two leaderships in Downing Street.

The annual meeting of the Joint Ministerial Committee in No 10, chaired by David Cameron and attended by UK Ministers and those from the three devolved administrations, focused on counter-terrorism, the economy and constitutional matters and was followed by the first 30-minute bilateral between the Prime Minister and First Minister Nicola Sturgeon.

Mr Carmichael suggested an example of the resetting of relations was the PM's decision, taken "in good faith", to fast-track the recommendation in the Smith Commission that 16 and 17-year-olds in Scotland should be able to vote in the 2016 Holyrood elections. Mr Cameron has promised to do "all he can" to enable this to happen through a so-called Section 30 Order; a Westminster parliamentary device used to enable the independence referendum to take place.

Ms Sturgeon, following her meeting with the PM, said she was "very confident" this would now happen in the New Year, providing enough time for the Scottish Parliament to bring forward a Bill to extend the franchise for May 2016.

She emerged from her bilateral, saying: "David Cameron and I are worlds apart in terms of political philosophy and outlook and our views on the constitution in Scotland but, yes, we can do business, where we find common ground."

There was an agreement to establish a joint ministerial working group involving UK and Scottish Government Ministers to look at the practical implementation and transitional issues around welfare and work programmes.

"The PM made clear that he wants to work with the First Minister, forging even stronger ties between our governments and our parliaments and working together on the big issues for the future of Scotland and the United Kingdom," said a Downing Street spokesman.

Mr Carmichael stressed: "It takes two to reset a relationship," noting how time would tell if Ms Sturgeon would be more constructive and co-operative to work with than her predecessor Alex Salmond.

"Where you have areas of interface between the two governments, these are seen as opportunities to make the system of two governments work rather than as the generation of grievance and the creation of difference and division," he added.