David Cameron is prepared to consider “sensible suggestions” for more powers for Scotland.
The prime minister indicated he is willing to look again at welfare but ruled out full fiscal autonomy for Scotland and a second independent referendum.
Mr Cameron and Nicola Sturgeon appear to have a formed a working relationship as they held their first talks since the general election.
The prime minister described the meeting as “very positive” after nearly an hour at the Bute House, the first minister’s official residence in Edinburgh.
The tête-à-tête was in the shadow of the previous day’s report from Holyrood’s cross-party devolution committee that concluded the current plans to transfer more powers to the Scottish Parliament failed to meet both “the spirit or the substance” of the Smith Agreement.
Mr Cameron said his government would make sure “it really is Smith” and added they were going to look again at welfare to make sure the proposals reflected the commission’s recommendations.
“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,” he said.
“I don’t rule out making other changes if sensible suggestions are made.”
The prime minister said he did not think a second referendum was “remotely on the cards” as he too at face value comments by former first minister Alex Salmond it was a “once-in-a-generation, potentially a once-in-a-lifetime, opportunity”.
Ms Sturgeon called the meeting “constructive and businesslike”.
She said there was an commitment from Mr Cameron to implement the Smith Commission proposals “in full”.
“I have said we will put forward proposals for devolution further than the Smith Commission proposals,” she 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, but there is an agreement to look at that and there will be a meeting with deputy first minister and the secretary of state for Scotland to take that discussion forward.”
“I want Scotland to have full fiscal autonomy, David Cameron doesn’t, but what we said in our manifesto was that there were priority powers over and above the Smith Commission that we wanted to see devolved.”