Wales had a "lop-sided" system of devolution, with law-making powers granted by a referendum in March, but far less power over its finances.

BBC: Welsh assembly's 'new power after Scots independence'

The devolution law hands the regions many of the central government's former responsibilities, like health care, education and public works, but only a quarter of its revenue.

ECONOMIST: Devolution isn't working as planned

This process, known as devolution, would effectively transfer a whole swathe of law making and administrative powers from Westminster to the Scottish Parliament and Scottish Executive.

BBC: Devolution in Scotland

David Cameron MP said that it was necessary to review the devolution arrangement between the Welsh Assembly and the UK Government in light of the referendum on law-making powers in March 2011.

BBC: David Cameron statement