David Cameron's government has signalled its openness to giving more powers to Scotland.

 

The move comes just days after senior Tories demanded the devolution of all tax and spending to stop Scots treating England "as a piggy bank".

The Conservatives have already agreed to implement the cross-party Smith Commission proposals on further devolution.

But newly appointed Scottish Secretary David Mundell said that he expected that greater powers on top of that agreement would be "debated and discussed" with Scotland's new army of 56 SNP MPs.

The SNP has called for all the gradual devolution of a tax and spending, otherwise known as full fiscal autonomy.

But one leading think tank has warned that the move could create a £7 billion black hole in Scotland's finances.

Speaking outside Downing Street Mr Mundell said that the Conservative Government still planned for bring forward the Smith Commission proposals in the Queen's Speech.

But he signalled ministers would be open to amendments from the SNP , who now make up the vast majority of Scottish MPs.

Mr Mundell said: "We are going to see the government bring forward the Smith Commission proposals and then we are going to have debate and discussion on the floor of the House of Commons.

"That is the way that it should be and it is the opportunity for MPs to make their views known in the usual way".

Mr Mundell spent around half an hour inside No 10 after being called to speak to the Prime Minister.

Asked what they discussed he said: "We have had a discussion about how we are going to shape the Scotland Office going forward.

"I can give the absolute guarantee it will not be business as usual.

"We will ensure that the UK Government in Scotland is effectively represented, that we take forward the Smith Commission proposals which will provide an opportunity for debate and discussion on the future of Scotland.

"And that is a debate and discussion in which I'm sure that all Scotland's MPs will be playing a full part".

Over the weekend former Environment Secretary Owen Paterson said: "My belief is that the Scots should be responsible for the money they spend.

"They cannot treat England as a piggy bank to be raided so they can go round promising free this, free that and expect the English to pay."

SNP MP Pete Wishart attacked Mr Mundell's appointment.

He said: "The Tories' share of the vote in Scotland at the General Election - at under 15 per cent - was the lowest they have ever had, while the SNP achieved 56 of Scotland's 59 seats.

"The days of business as usual are over, so it is a pity that David Cameron did not take the opportunity to scrap the post-devolution anomaly that is the Scotland Office, and invest the £7 million that is spent on it on public services instead."

He added: "David Mundell is the sole representative of a party that was rejected by Scotland in record numbers. It is vital that he respects the mandate of the people of Scotland, expressed so decisively last Thursday.

"Scotland voted for a manifesto to end austerity, for more powers for Scotland and against the Tories' planned welfare cuts - and the UK government simply cannot ignore that."