The former Scottish Secretary Michael Forsyth made a scathing attack yesterday on the Calman Commission's investigation into extra powers for the Scottish Parliament, claiming that those pursuing the notion were “off their heads”.

Lord Forsyth of Drumlean dismissed the idea of the devolution review being carried out at a time of economic turmoil. “I think it's amazing when the house is on fire that people are wondering if it might be a good idea to raise more taxes in Scotland,” he said. “I think they are off their heads.”

Asked to consider the possibility that it could recommend the lowering of taxes in Scotland, Lord Forsyth added: “I'll eat my hat.”

The Scottish Conservatives, who supported the establishment of the Calman Commission, distanced themselves yesterday from Lord Forsyth's comments.

During his time as Secretary of State for Scotland, Lord Forsyth fought Labour's devolution plans and dubbed Holyrood's 3p tax varying power the “tartan tax”. His onslaught on the proposal was credited with forcing Labour's referendum U-turn, which posed a second question on whether the parliament should be given tax powers, in an attempt to kill off the tartan tax argument.

Lord Forsyth's position on Calman is at odds with the three main unionist parties. who are strongly in favour of the Calman Commission.

Lord Forsyth, who now works as an investment banker, argues that rather than reviewing the devolution settlement, Holyrood politicians should

be following the example of the US President-elect, Barack Obama, in examining their expenditure in an attempt to counter the effects of the economic downturn.

Although the SNP Government does not back the Calman Commission, a source close to the First Minister was quick to dismiss Lord Forsyth's criticism of it. “The vast majority of people realise that the Scottish Parliament needs real financial powers including the power to borrow,” the source said.

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