More questions than answers in 'state of the union' review

His appointment will inevitably lead to more powers for the Scottish Parliament and a complete review of the way money is divided around the UK.

For Donald Dewar, the late First Minister, the devolution settlement he devised represented "the settled will" of the Scottish people. Yesterday, in a wood-panelled and brightly-lit conference room, Sir Kenneth's appointment proved this was no longer the case. The devolution settlement now represents merely the starting point for a radical redrawing of the relationship between Scotland and the rest of the United Kingdom.

As he walked into room P102 on the first floor of the media tower in the Scottish Parliament yesterday, Sir Kenneth was flanked by three beaming party leaders: Wendy Alexander for Labour, Annabel Goldie for the Tories and Nicol Stephen for the Liberal Democrats.

Together, they command 78 of the 129 MSPs in the parliament, more than enough to drive through their plans in this or any other parliament.

But beneath the nervous smiles as the flash guns cracked and the television cameras rolled, there was considerable uncertainty – none of them really had any idea quite where this process will take the country.

"I believe this will be the commission that will decide the constitutional future of Scotland and will create a stronger Scottish Parliament within a stronger UK," Mr Stephen said.

That view was echoed by Miss Goldie, when she said: "Mainstream opinion in Scotland wants devolution to work better and for Scotland to be secure in a stronger UK – that is what this body is all about."

And Ms Alexander said: "I think ten years on is the right point to review whether the powers and responsibilities of the Scottish Parliament are properly managed."

But none could say what the commission would come up with, because its remit is so wide-ranging. It can examine any and all parts of the devolution settlement and recommend any changes – as long as Scotland stays within the UK.

Sir Kenneth was clear that he would stop short of considering the question of independence, but he, too, has no idea what his commission will come up with. "Like the majority of the Scottish people, I very much see myself as part of the UK, but a Scot within that," he said.

He went on: "Seventy-seven per cent of the Scottish public don't think independence is the right way forward. All of the work over the last few years makes it pretty clear that's not an issue right now. Certainly, for this commission, it will not be an issue we will be discussing.

"There are plenty of other issues that are relevant to Scotland and its institutions and its parliament, which will give us plenty to look at."

However, as the three party leaders and the new chairman of the constitutional commission were taking this brave leap in the dark, SNP managers were clear where they stood: they were delighted, even though the body would not consider independence.

They believe that any moves to strengthen the powers of Holyrood and weaken the ties with Westminster will push Scotland along the road to independence.

If the Scottish Parliament gets fiscal autonomy of any form – whether in the guise of assigned tax revenues or actual control over the power to raise or lower taxes – the Nationalists believe this will give Scots the desire for more power and will lead to Holyrood getting complete control over its finances in time.

A spokesman for the First Minister said the decision of the unionist parties to set up the commission had made an independence referendum more likely, and he made it clear Alex Salmond thought his opponents had played into his hands.

He said: "The election last May has brought about change right across the political spectrum. What we are seeing at the moment would not have happened had we not won the election."

He said Mr Salmond had always been willing to accept more than one question in an independence referendum, and now the commission had been tasked with coming up with more powers for the parliament, that option could be put to the people, too.

In a piece of media management designed to show the support of the UK government, Gordon Brown issued a carefully worded statement to coincide with yesterday's commission launch.

The Prime Minister said the Cabinet had given the commission its approval and he was "determined to review the provisions of the Scotland Act in the light of ten years' experience while securing Scotland's place within the United Kingdom".

However, Professor John Curtice, of Strathclyde University, warned that the creation of the commission was a "gamble" for the unionist parties, who were hoping it would entrench support for the Union but not lead to greater demands for independence.

"If this comes up with anything that increases the autonomy of the Scottish Parliament, Scotland is going to look different from the rest of the United Kingdom," he said.

He said the commission aimed to do two things: convince Scots of the need for more financial control and persuade the English that Scots should have more financial responsibility.

"The crucial thing about this commission is who it persuades at Westminster, because all the important decisions on this will be made at Westminster," Prof Curtice said.

Sir Kenneth will publish his interim report in November, with his final report due some time next year. He will take evidence from the political parties, from "civic Scotland" – which means the churches, trade unions, business leaders and others – and from any other interested parties and individuals.

His review will run alongside the "national conversation" being organised by the Scottish Government and, while the SNP's version is concentrating on independence, Sir Kenneth's review will look at everything but that.

Sir Kenneth stressed yesterday that he was a unionist and a devolutionist, and that he did not believe in Scotland going it alone. However, what no-one knows is how far his review will go in pushing devolution along the road to independence.

Calman says study 'will not be driven by Downing Street'

ONE of Scotland's leading doctors and academics took charge of the new, wide-ranging review of the devolution settlement yesterday, and immediately insisted he would not take orders from Downing Street.

Sir Kenneth Calman, the Chancellor of Glasgow University, who will chair the Scottish constitutional commission, said that he would lead a genuinely independent inquiry.

"I would not have accepted this if I felt this was something being driven from elsewhere," he said.

Sir Kenneth also denied his inquiry would be fatally weakened by the fact independence would not be within the scope of its study, adding: "All the work over the last few years makes it pretty clear that's not an issue right now."

The setting up of the commission was discussed and approved by the Westminster Cabinet yesterday.

Gordon Brown, the Prime Minister, said: "I am delighted that Sir Kenneth Calman has agreed to chair this body and that it has the support of both the Conservatives and the Liberal Democrats.

"Together, we are determined to review the provisions of the Scotland Act in the light of ten years' experience, while securing Scotland's place within the UK."

The commission hopes to produce an interim report in November.

At yesterday's launch in Edinburgh, Sir Kenneth was joined by Wendy Alexander, the Scottish Labour leader, Nicol Stephen, the Scottish Liberal Democrats' leader and Annabel Goldie, the leader of the Scottish Tories.

The commission is officially described as an "independent review" supported by both the Scottish Parliament and the UK government, and its recommendations will be considered by both.

Its terms of reference, in line with a resolution passed by the Scottish Parliament, are to review the workings of the Scotland Act and recommend improvements, while continuing to secure the position of Scotland within the United Kingdom.

Sir Kenneth said that his activities and interests over the past 30 years had all involved questions of quality of life.

He added: "This report is about how we can improve the quality of life and wellbeing of the people of Scotland."

Meanwhile, the Scottish Government will today launch the second phase of its "national conversation" on the country's constitutional future.