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DAVID Cameron is considering offering the SNP full fiscal autonomy for Scotland in a peace deal to save the Union.

Tory insiders say the newly re-elected Prime Minister is looking at reopening the Vow plans for increased devolution – and including the full tax and spending control that the SNP insist they want.

He came face to face with Nicola Sturgeon yesterday at ceremonies to mark 70 years since the end of World War II in Europe. And the two leaders spoke on the phone, with Sturgeon telling Cameron that the scale of her party’s triumph meant an end to “business as usual” at Westminster.

Experts have warned that fiscal autonomy would leave a £7.6billion-a-year black hole in Scotland’s finances.

Sturgeon disputes that – although she put FFA on the back burner dring the campaign – but Tory strategists are urging Cameron to put her on the spot by offering just such a deal.

A senior party source said: “I think everything has to be considered.”

The insider added that a “fair, equitable and sustainable” deal with Scotland was needed, but it had to bring “equilibrium” to all countries in the UK.

The Tories are set to press on with controversial plans for “English votes for English laws”, as well as cutting the number of Scots MPs from 59 to 52.

The source said the Smith Commission plans for extra devolution had been too rushed – particularly when it came to extra welfare powers.

They added: “We can take a step back now. There is time to get it right.”

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Sturgeon said she was stunned by the SNP’s “historic” election triumph, adding: “Never in my wildest dreams would I have imagined we’d win 56 out of 59 MPs.”

The First Minister told Cameron on the phone yesterday that the scale of the SNP win had changed everything. She said later: “The government at Westminster cannot ignore what has happened in Scotland. People have voted overwhelmingly for Scotland’s voice to be heard and for an end to austerity.

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“We will go to Westminster and seek to ensure that Westminster governments can’t ignore Scotland, that they can’t simply push aside the things that were voted for yesterday.”

Sturgeon said the Smith proposals needed to be “looked at again”, but added: “That’s a discussion we have yet to have.”

She said ending austerity was her party’s top priority.

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