Lib Dem option for federal UK is ruled out by Calman

THE Liberal Democrats suffered a setback yesterday when the commission examining devolution explicitly ruled out the party's preferred policy of federalism.

The Liberal Democrats want to see power devolved within the UK on a federal basis, giving regions and countries a much stronger role.

The party was also one of the three to set up the Calman Commission to examine ways of improving the devolution settlement. But in a letter from the commission to a member of the public enquiring about federalism, a spokesman made clear the issue was not on the agenda.

"As our remit is about strengthening devolution within the Union, it would arguably be beyond our remit to propose a move to a federal structure for the UK," it said.

An SNP spokesman described the letter as a "snub" to Lib Dem leader Tavish Scott.

He said: "The Calman Commission seems to be more focused on retaining the sovereignty of Westminster than delivering a substantial new settlement for Scotland, which must be very concerning for the Lib Dems."

But Mike Rumbles, for the Liberal Democrats, said the Calman Commission had already gone further than many expected, because it was engaged now with all four main parties.

He added: "No-one ever thought that Calman alone would be able to restore a new federal structure for the whole UK, but the Commission's interim report made it very clear that it would look into the further devolution of tax powers to Holyrood. This would be a welcome and significant step."