The peer tasked with building a consensus around new powers for Scotland has advised his work will not be easy and he cannot force an agreement between the political parties.

Robert Smith, Lord Smith of Kelvin, urged Scotland's political parties, which have separate devolution proposals, to show "courage and compromise" in reaching an agreement.

He set out details of his Scotland Devolution Commission and started talks with Scotland's political parties during a visit to the Scottish Parliament today.

He said: "Following the referendum we have a willingness, shared by all five of Scotland's main political parties, to strengthen the powers of the Scottish Parliament.

"My message today to the political parties is a simple one - Scotland expects you to now come together, work together and agree the detail of what those powers should be.

"Time is tight but this is not an exercise in thinking about what we could do; that has been done. It is about agreeing on what we will do.

"My job is to create a process through which agreement is reached, but I cannot force an agreement. It will not be easy; it will require positive intent, courage and compromise from all parties. But I have confidence that our political leaders will rise to the challenge and I look forward to working with them."

The commission will hold cross-party talks and civic engagement to produce recommendations for further devolution by November 30.

This will be informed by a UK Government command paper, to be published by October 31, and will result in the publication of draft clauses by January 25.

The recommendations will deliver more financial, welfare and taxation powers to the Scottish Parliament.

A set of proposals - the heads of agreement - will be published by the commission, independent of both the UK and Scottish governments, based on the views of the five political parties and with input from the wider engagement programme.

Over the course of today, Lord Smith will meet with the Presiding Officer and representatives of the Scottish Conservative Party, Scottish Labour, Scottish Liberal Democrats, the Scottish National Party and the Scottish Green Party.

He will invite each party to nominate two representatives, at least one of which should be a member of the Scottish Parliament, to take part in the cross-party talks.

He will also ask each party to prepare a written submission on their views on strengthening the Scottish Parliament within the United Kingdom. The names of the party representatives will be published by September 26.

Later this week, Lord Smith will write to Scottish civic institutions and business groups, seeking their views on strengthening the Scottish Parliament within the United Kingdom.

Next week, he will announce plans for how individual Scots can share their views on the issue.

The SNP has said the three Westminster parties must reveal their devolution plans as a matter of urgency, amid reports Scotland faces funding cuts in future years.

SNP MSP Jamie Hepburn said: "Less than a week after people in Scotland cast their vote in the referendum, the Westminster parties are already backtracking on their panicked promises to the people of Scotland.

"The Tories are now confirming they will press ahead with cuts to the Barnett formula, despite the fact they - along with Labour and the Lib Dems - said our budget was safe. It is already crystal clear this is absolutely not the case.

"Suggesting that Scotland's funding should be cut in order to offset additional financial powers rather misses the point. Scotland pays its way in the UK, and we have generated more tax revenue per head of population than the result of the UK in every one of the last 33 years. Modest proposals are not good enough - we need to be given the powers to protect our budget from Westminster Tories in years to come.

"While the Tories can hardly contain their excitement about the chance to slash the Scottish budget, they and the other Westminster parties are far less forthcoming on the delivery of the powers they have promised the people of Scotland.

"45 per cent of people in Scotland voted Yes last week - and polling shows a further quarter of No voters expect substantial further powers in the coming months.

"The Westminster parties have a duty to the people of Scotland to honour their commitment on further powers. As a matter of urgency, they must outline exactly what they are proposing for the Scottish Parliament.

"It is only with this much needed clarity we can move forward and work to get the best possible deal for Scotland in the circumstances."

Scottish Secretary Alistair Carmichael said: "I welcome the strong commitment to the practical delivery of new powers Lord Smith has outlined today.

"It is a clear statement of his intent to work closely with all the political parties in Scotland to strengthen the Scottish Parliament and to follow through on the pledges which have been made to people in Scotland.

"As he says, it will require commitment and focus on the part of all those involved but the process has hit the ground running and I am confident we can find common ground quickly and constructively.

"We should also be clear that this process is taking place in the context of an overwhelming vote by the people of Scotland to remain in the UK. The Government will assist in any way it can during Lord Smith's Commission and I look forward to playing my part as we build on the success of Scottish devolution as part of the UK."

Representatives of Scottish business and industry have issued a joint statement calling for any new devolution settlement to focus on driving economic growth.

The statement has been signed by the Federation of Small Businesses, Scottish Chambers of Commerce, Institute of Directors, CBI, Scottish Financial Enterprise, SCDI, ScotlandIS, Chemical Sciences Scotland, Scotch Whisky Association, Scottish Retail Consortium, Scottish Engineering, Scottish Building Federation and ICAS.

It reads: "With the Scottish Parliament set to become a more powerful force in our economy, the touchstones of the new devolution settlement must be boosting business and growth.

"It is also really important for business that whatever settlement is now agreed is stable and sustainable, and seen to be so.

"The UK and Scottish governments both have a huge influence on the business environment. We hope that both will continue to engage with Scottish business, actively and visibly, on the key issues within their remit."