Gordon Brown proposes 'third option' for Scotland
Gordon Brown has proposed a third option for Scotland's future which would see a raft of new powers handed over after Brexit.
The former prime minister will say a new form of federal home rule is needed to unite the country and avoid years of "bitter division".
The speech in Fife comes amid a constitutional stand-off between the UK and Scottish governments over the calling of a second independence referendum.
Mr Brown has already pledged to join forces with Scottish Labour leader Kezia Dugdale to campaign for a People's Constitutional Convention to look at how power is distributed across the nations and regions of the UK.
Mr Brown proposed that a range of powers should be passed to the Scottish Parliament after Brexit.
These controls include the setting of VAT rates, the power to sign international treaties, and controls over agriculture, fisheries, environmental regulation, employment and energy.
The former PM also called for the return to Scotland of the £800 million currently contributed to the European Union.
Mr Brown proposed the Bank of England becomes the Bank of England, Scotland, Wales and Northern Ireland with fully-staffed representation in Scotland "to reinforce the fact that the pound is for everyone".
He said: "The third option, a patriotic Scottish way and free from the absolutism of the SNP and the do-nothing-ism of the Tories, is now essential because post-Brexit realities make the status quo redundant and require us to break with the past.
"The status quo has been overtaken by events because unless powers now with the European Union are repatriated from Brussels to the Scottish Parliament, the Welsh Assembly and the regions, Whitewall will have perpetrated one of the biggest power grabs by further centralising power.
He added: "Most of all, a new third option can unify our country and end the bitter and divisive Yes v No conflict that will continue to rip us apart."
It comes as SNP leader Nicola Sturgeon announced she will plough aheadwith plans for a second Scottish independence referendum - despite the Prime Minister rejecting her call.
Ms Sturgeon warned that if Westminster does not back her there are "options" for the Scottish government to act.
Theresa May repeatedly said "now is not the time" to be discussing the division of the union, warning it threatened to undermine the UK's Brexit negotiations.
Speaking at the SNP conference in Aberdeen, the Scottish First Minister said she agreed "now" was not the time.
But she said that the wheels needed to be put into motion if such a referendum were to be held in autumn next year as set out in her plan.