David Cameron will discuss the plans for further devolved powers at a meeting at Holyrood this afternoon with Scotland’s first minister Nicola Sturgeon. The 134-page document will contain 44 clauses designed to enact the proposals put forward in November by the Smith Commission.

Alexander said: ‘As a result of this bill, the Scottish parliament will have the most devolved powers of any institution anywhere and will be raising more than half the money it spends.’

Under the Smith proposals, Scotland is to be given new powers to set income tax rates and bands and will also be responsible for half of the revenues from VAT.