EDINBURGH - The "informal" relationship between the Scottish government and Westminster cannot last and needs to change, a body examining the devolution set-up yesterday found.
The Calman Commission, established by the Scottish non-nationalist parties and London, has identified broadcasting, energy policy, animal health, firearms and misuse of drugs among a range of areas which could see further powers given to Holyrood, in an interim report.
But, although it will continue to examine greater devolution of taxation powers, the committee has rejected the prospect of full fiscal autonomy for Scotland under devolution as "inconsistent with the Union" .
"The essentially informal means of managing relationships between the parliaments and governments . . . is not likely to be sustainable in the years ahead," committee chairman Sir Kenneth Calman said.
"There is a legitimate expectation that the parliaments . . . should work together in the common interests of the UK citizens even though there will be political differences between them - and mechanisms should exist to allow for this."
There has been a series of clashes between Westminster and the Scottish government since the Scottish National Party (SNP) took power in Scotland last year.
The commission was established with the support of the pro-unionist Labour, Tory and Liberal Democrat parties at the Scottish Parliament, but also has the backing of the Labour government in London.
Sir Kenneth described the report as a "staging post" outlining the body's work since it started taking evidence seven months ago.
The areas of responsibility with a "plausible case" for further examination include broadcasting, energy policy, animal health and movement, firearms, misuse of drugs, regulation of healthcare professionals and marine planning. It will also take further evidence on the civil service, insolvency, employment law and some aspects of immigration, as well as health and safety.
But Sir Kenneth also ruled out devolution of power in other key areas. "Some functions are an integral part of the Union and can only be dealt with at the UK level," he said, "for example, defence and national security, international representation, an integrated single market."
The monarchy, foreign affairs, currency and coinage, as well as some aspects of the economy also fall into this bracket.
The commission has been charged with looking at all aspects of constitutional reform short of independence.
The SNP government is holding its own consultation into its proposed independence referendum, entitled the "National Conversation".
Sir Kenneth said the commission would look into the way Scotland is funded, with three possible methods having been identified.
These comprise the current £30 billion (€35 billion) block grant Holyrood gets from Westminster, as well as devolution of taxes, and assignment of tax revenues. But Sir Kenneth said: "Full fiscal autonomy is inconsistent with the Union and we do not consider it further."
An independent working group for the commission found last month that the current set-up meant that accountability for the taxation which funds spending decisions in Scotland was "missing". - (PA)