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Mr Salmond would be forced to drop his planned third option which would allow for the devolution of all powers, except foreign and defence policy, from London to Edinburgh. Known as "devo max", it is seen as an insurance policy if full independence is rejected by the Scottish people. In London, ministers said the devo max question was a "red line" they would not cross. They will insist on a ballot in which Scots would choose between independence and remaining in the Union, even if this means a protracted legal wrangle which may have to be resolved by the Supreme Court in London.
One government source said last night: "You can't have a 'maybe' on the ballot paper. It could be a recipe for chaos. What happens if 51 per cent of Scots vote for full independence but 71 per cent back more devolution?"
Although pro-Union politicians would prefer to see the referendum held next year to end the uncertainty about Scotland's future, ministers are ready to show flexibility over the date if Mr Salmond abandons the devo max option. Senior Labour and Liberal Democrat figures believe David Cameron was "inept" at the weekend in the way he demanded a vote "sooner or later", thereby allowing Mr Salmond to accuse London of trying to hijack the process.
