The cabinet is set to
discuss proposals later to give the Scottish government the legal power
to hold a binding referendum on independence.
It is understood Downing Street may set a time limit for the vote, possibly to take place within the next 18 months. Any vote would be between leaving or staying in the UK and there would be no option for greater devolved powers.
Deputy First Minister Nicola Sturgeon accused Westminster of "trying to interfere in Scottish democracy".
The Scottish government says it should decide the referendum timing and form.
'Moral force' The Scottish National Party has pledged to hold a referendum in the latter half of its term, with 2014 thought to be the preferred date.
The UK government is expected to say that Scotland can hold a referendum on any subject it chooses but the result would only have advisory status.
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