David Cameron hints at further Scottish devolution but insists on waiting until existing power transfers are completed

The Prime Minister and Scotland’s First Minister held what both sides described as amicable talks in Edinburgh

The Prime Minister and Scotland’s First Minister held what both sides described as amicable talks in Edinburgh (EPA)

David Cameron opened the door to further policies being devolved to Scotland but told Nicola Sturgeon that major changes would have to wait until after existing plans to transfer powers have been implemented.

The Prime Minister and Scotland’s First Minister held what both sides described as amicable talks in Edinburgh, their first since the SNP won 56 of Scotland’s 59 seats at the general election.

Mr Cameron said afterwards that he would consider "sensible suggestions" on more powers for the Scottish Parliament. He confirmed that a Bill in the May 27 Queen’s Speech would implement the all-party Smith Commission’s plans to hand Holyrood powers including in income tax rates and bands and £2.5bn of welfare spending. "We will deliver the stronger Scottish Parliament, be in no doubt about it,” he said.

But Holyrood's Devolution Committee said on Wednesday that the Bill’s draft clauses that did not live up to "the spirit or the substance" of the Smith Agreement, and Mr Cameron said: "We're going to look again at welfare and make sure the clauses reflect what that agreement was."

Mr Cameron said that he would consider "sensible suggestions" on more powers for the Scottish Parliament (Getty) (Getty Images)

He added: "The First Minister wants to send some proposals for me to look at and I'm happy to examine proposals, there's going to be a debate, of course there will be a debate. I don't rule out making other changes if sensible suggestions are made."

However, Mr Cameron added: “Let's make sure Smith is implemented in full. I'm going to keep the commitment I made to the people of Scotland. Let's get that done first because it does create a really strong Scottish Parliament.”

Ms Sturgeon said the Prime Minister had confirmed the imminent legislation would implement the Smith Commission proposals in full. “I said we will put forward proposals for devolution further than the Smith Commission proposals,” she added. "What we are talking about are business taxes and employment legislation, the minimum wage and more powers over welfare."

The SNP leader said: “The Prime Minister has said they would consider those proposals. I am not going to put words in his mouth and say he has agreed any specific proposals.”

Ms Sturgeon said: "The ball is in his [Mr Cameron’s] court but I'm going into this in good faith." She added: "David Cameron and I are a world apart politically but, where we can, I'm determined to do business in the interests of the people of Scotland and across the UK."

The SNP’s shopping list will be discussed by John Swinney, the Deputy First Minister, and David Mundell, the Scottish Secretary and sole Conservative MP north of the border.

Mr Cameron said there was an "honest disagreement" between the two leaders over whether Scotland should have full fiscal autonomy. He insisted: "I think the option of full fiscal autonomy is not a good option for Scotland inside the United Kingdom, I think it would land Scottish taxpayers with £7bn of extra taxes or Scottish people with £7bn of extra cuts."