A NEW home rule campaign is being launched by a leading think tank in a bid to influence efforts to devolve further powers to Holyrood.

Reform Scotland, which is chaired by financier Ben Thomson, is putting together a coalition of high powered supporters to press for a "federal-like" constitutional settlement.

The campaign is at an early stage but is seeking support from MSPs across all five Holyrood parties. Business and civic leaders are also expected to throw their weight behind the drive, which has been given the working title The Campaign for Scottish Home Rule.

A campaign leader is expected to be named at an official launch in the coming days. It comes as Lord Smith's devolution commission begins work to reach agreement between the UK parties on their rival plans to hand Holyrood more powers.

Yesterday the Scottish Conservatives appointed former leader Annabel Goldie and Glasgow University academic Adam Tomkins as their representatives on the commission. The Scottish LibDems named former Scots Secretary Michael Moore and former leader Tavish Scott.

The home rule campaign will seek its own representatives from each of the parties. It will be underpinned by the "Devo Plus" system of enhanced powers.

Under the Devo Plus proposals, which were developed by Reform Scotland, Holyrood would take control over income tax, corporation tax and capital gains tax.

The Scottish Government would become responsible for a number of welfare schemes, including winter fuel payments. Legal mechanisms will be established to resolve disputes between Holyrood and Westminster. A source close to the think tank said: "For those who believe in home rule, the time is now. The message from Scotland is that the UK is far too centralised, and that the only way to hold it together in the long-term is to federalise it. The campaign will be pushing the UK Government, the Scottish Government and the Smith Commission to deliver to the level of expectation."

The source added: "It is a way of bringing people together under a home rule banner. The specific Devo Plus ­framework will not be at the heart of this but the philosophy behind will be."

A Reform Scotland briefing note seen by The Herald says: "The Campaign for Scottish Home Rule is expected to be the Scottish arm of an all-nation, all-party umbrella group promoting a federal UK."

Devo Plus is based on the belief the Scottish Parliament should be responsible for raising most of the £30billion it spends each year.

A group has been campaigning for Devo Plus for a number of years, led by the LibDem peer and former MSP Jeremy Purvis.

It says the system would give Holyrood control over around 60 per cent of its budget.

The rest of the Scotland's budget would come from a "more transparent" hand-out than the present block grant, which is decided using the Barnett Formula.

The existing Devo Plus campaign wants all levels of government to be responsible for raising most of their revenue, suggesting the new campaign will back moves to hand cities extra powers.

Speaking after last week's referendum vote, merchant banker Mr Thomson said the result showed Scotland "wants change".