Iain Duncan Smith said he will not be rushed into a decision

Speaking from Blackpool during the Tories' annual conference, Iain Duncan Smith told BBC Radio Scotland that the issue would be reviewed.

But he denied that the Tories had not yet made up their minds on fiscal autonomy for Scotland.

At present the Scottish Parliament can vary the basic rate of tax by up to 3%.

Scottish Tories are thought to be considering whether greater financial powers could offer more responsibility over how taxpayers' money is allocated.

Mr Duncan Smith said: "David McLetchie (Scottish Tory leader) has made the position very clear - like all these things he will review this, look at it, and when the time comes we will make an announcement about our position.

"What I'm not about to do is to rush into any decision, that at this stage as David McLetchie has already said, is not his first priority.

"The first priority of a Scottish administration under David McLetchie - which, by the way, there will be next time there are Scottish elections - that administration, with me, will set down our priorities.

"Our priorities are to give people better healthcare, better education, to put police back on their streets, and to get those criminals off the street."