DAVID Cameron is facing an angry backlash following suggestions he wants to use Scotland's proposed new powers to ban Scottish MPs voting on income tax.

The row erupted just hours after Labour believed it had secured guarantees there would be no such bar. The cross-party Smith Commission report published yesterday states: "MPs representing constituencies across the whole of the UK will continue to decide UK's Budget, including Income Tax."

That wording was welcomed by former Labour Prime Minister Gordon Brown, who has previously warned of a Tory trap around the budget.

But within hours of the document's publication, Downing Street suggested Scottish MPs would be barred from voting on income tax in England. The Conservatives argue Scots MPs should not vote on issues that do not affect their constituents.

Labour MPs accuse the Prime Minister of attempted gerrymandering - and of trying to create a separate 'English Parliament' at Westminster that the Tories can control and use to hinder Labour's plans if they lose next year's General Election.

Many also warn a voting ban could prevent a Scot ever again becoming Chancellor or Prime Minister, because collective responsibility demands ministers vote for government policies.

The Prime Minister's official spokesman said that some elements of income tax would remain UK-wide and there would "continue to be a UK Budget".

However, he added: "Of course there are elements where you have seen devolution on financial matters (to Scotland), and in that respect I would say the principle of English votes for English laws applies."

Alistair Carmichael, the Liberal Democrat Scottish Secretary, hit back saying: "The passage in Smith says there's not to be two classes of MP; we'll honour that and it would be sensible if (the Prime Minister) does as well."

Margaret Curran, Labour's shadow Scottish Secretary, stressed that the Commission had agreed "there would be full voting powers for Scottish MPs".

Last night, Stewart Hosie, the SNP's deputy leader, said: "The ink is barely dry on the Smith Commission report and, in their rush to implement English votes for English laws, the Tories have already signalled they will overturn the clear recommendation about Scottish MPs being able to vote on income tax."

Amid the furore, David Cameron pledged his 'English votes' proposals would be published before Christmas.

Former Tory leader William Hague, who heads the cabinet committee in charge of the policy, also announced he was in favour of a Commons vote on the issue.

Despite the backlash north of the Border, some Tory MPs protested Mr Cameron's proposals did not go far enough and angrily accused party leaders of throwing petrol on the flames of English "resentment".

Backbenchers and former ministers lined up to call for a new settlement for England in the wake of the report.

Their demands included cuts to public spending levels in Scotland as well as restricted MPs' voting rights.

Sir Edward Leigh, the MP for Gainsborough in Lincolnshire told the Commons: "If we rush this process, we are in danger of throwing petrol on the embers of English resentment and Scottish separatism."

Former Tory minister and Hampshire MP Sir Gerald Howarth added that the Commission itself was "no way to introduce massive constitutional change".

Many protested at the idea that Scottish MPs would be able to vote on income taxes that may not directly affect their constituents.

One-time Tory leadership contender John Redwood said that once the Scottish Parliament was setting its own income tax rates "it would be quite wrong for Scottish Members of this Parliament to be trying to fix those bands and rates for the English."

When Mr Carmichael replied that Smith had agreed income tax was "shared between the two Parliaments" there were cries of "rubbish" from the Tory benches.

Other Tory MPs complained about the continuation of the Barnett formula, which helps to decide the amount of public spending in Scotland.