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Scottish Labour leaders face revolt over income-tax proposals Scottish Labour leaders face revolt over income-tax proposals
(5 months later)
The Scottish Labour leadership is fighting to contain a rebellion by senior party figures who are resisting proposals to pass on full income-tax powers to the Scottish parliament.The Scottish Labour leadership is fighting to contain a rebellion by senior party figures who are resisting proposals to pass on full income-tax powers to the Scottish parliament.
Senior Labour frontbenchers said to include the shadow defence secretary, Jim Murphy, and other MPs have reacted angrily to the proposals, the centrepiece of the Scottish party's blueprint to counter Alex Salmond's push for independence.Senior Labour frontbenchers said to include the shadow defence secretary, Jim Murphy, and other MPs have reacted angrily to the proposals, the centrepiece of the Scottish party's blueprint to counter Alex Salmond's push for independence.
As Scottish Labour MPs, MSPs and activists gathered for the party's annual conference, Johann Lamont, the party's Scottish leader, sought to defend the proposals from her party's devolution commission.As Scottish Labour MPs, MSPs and activists gathered for the party's annual conference, Johann Lamont, the party's Scottish leader, sought to defend the proposals from her party's devolution commission.
She admitted they had provoked internal divisions but said that devolving income tax was "the most compelling" proposal in the report. She said they simply built on measures which were already coming into force to give Holyrood the limited right to set Scottish rates of income tax.She admitted they had provoked internal divisions but said that devolving income tax was "the most compelling" proposal in the report. She said they simply built on measures which were already coming into force to give Holyrood the limited right to set Scottish rates of income tax.
In an effort to play down anxieties that the proposals had been already accepted by the party's leadership, Anas Sarwar, Scottish Labour's deputy leader and effective head of the party's 40 MPs, insisted he was not yet persuaded that entirely devolving income tax was necessary.In an effort to play down anxieties that the proposals had been already accepted by the party's leadership, Anas Sarwar, Scottish Labour's deputy leader and effective head of the party's 40 MPs, insisted he was not yet persuaded that entirely devolving income tax was necessary.
"I have yet to make my mind up," he told the Guardian. "The commission has looked at it and said that there's a strong case around the accountability argument but we have to look at how this would work, and how it would affect Scotland and the UK.""I have yet to make my mind up," he told the Guardian. "The commission has looked at it and said that there's a strong case around the accountability argument but we have to look at how this would work, and how it would affect Scotland and the UK."
But in a clear signal to party rebels, Sarwar added that the final decision – a firm set of proposals is due to be released next spring – would be based on appealing to voters, not their own MPs.But in a clear signal to party rebels, Sarwar added that the final decision – a firm set of proposals is due to be released next spring – would be based on appealing to voters, not their own MPs.
"The key point is that this isn't a debate between parliamentarians. It's a debate that Labour needs to have with the country: nothing is decided, nothing is set in stone. But we have to make sure our proposals are not just in the best interests of the Labour party but in the best interests of Scotland.""The key point is that this isn't a debate between parliamentarians. It's a debate that Labour needs to have with the country: nothing is decided, nothing is set in stone. But we have to make sure our proposals are not just in the best interests of the Labour party but in the best interests of Scotland."
The "devolution commission" set up by Lamont has recommended in its draft report that full control over £10.5bn in income tax in Scotland be passed to Holyrood if Salmond loses next year's independence referendum.The "devolution commission" set up by Lamont has recommended in its draft report that full control over £10.5bn in income tax in Scotland be passed to Holyrood if Salmond loses next year's independence referendum.
Scottish MSPs would then be able to set different tax rates to the rest of the UK, perhaps raising taxes for millionaires while cutting them harder for the poorest. The powers due to come in force in 2016 are more limited. If Holyrood raises or cuts income tax rates, it must do so by the same percentage on all rates. The Labour plans would allow complete flexibility to cut some rates and lower others.Scottish MSPs would then be able to set different tax rates to the rest of the UK, perhaps raising taxes for millionaires while cutting them harder for the poorest. The powers due to come in force in 2016 are more limited. If Holyrood raises or cuts income tax rates, it must do so by the same percentage on all rates. The Labour plans would allow complete flexibility to cut some rates and lower others.
The proposals, entitled "Powers for a Purpose", were designed to be a centrepiece for Scottish Labour's annual conference, which opened in Inverness on Friday, and as its main offer to Scottish voters, who mostly favour greater self-rule within the UK over independence.The proposals, entitled "Powers for a Purpose", were designed to be a centrepiece for Scottish Labour's annual conference, which opened in Inverness on Friday, and as its main offer to Scottish voters, who mostly favour greater self-rule within the UK over independence.
Senior Labour figures at Westminster believe it could undermine the UK and serve the interests of nationalists. Some were furious the report was given to the media before being discussed within the party; they insisted the proposals were described as outline and consultative, rather than decided.Senior Labour figures at Westminster believe it could undermine the UK and serve the interests of nationalists. Some were furious the report was given to the media before being discussed within the party; they insisted the proposals were described as outline and consultative, rather than decided.
One said: "Nobody was aware that the idea was even on the table." Another added that discontent spread to non-Scottish Labour MPs: "It is fair to say that the opposition from Scottish MPs was reflected across the parliamentary Labour party."One said: "Nobody was aware that the idea was even on the table." Another added that discontent spread to non-Scottish Labour MPs: "It is fair to say that the opposition from Scottish MPs was reflected across the parliamentary Labour party."
Lord O'Neill, a former Scottish Labour MP, said he couldn't see the logic of devolving full control over income tax if Scotland was still sharing a UK-wide welfare system and defence. "It bears all the hallmarks of coming out of the 'bright ideas bank' without being properly considered," he said.Lord O'Neill, a former Scottish Labour MP, said he couldn't see the logic of devolving full control over income tax if Scotland was still sharing a UK-wide welfare system and defence. "It bears all the hallmarks of coming out of the 'bright ideas bank' without being properly considered," he said.
Lamont openly acknowledged on Friday morning that there were disagreements within the party. In an effort to play down the significance of the proposals, she said they were draft ideas which were intended to serve as "the beginning of a conversation" within the party and with the country.Lamont openly acknowledged on Friday morning that there were disagreements within the party. In an effort to play down the significance of the proposals, she said they were draft ideas which were intended to serve as "the beginning of a conversation" within the party and with the country.
The debate about greater devolution was ignored by Ed Miliband, the UK party leader, in his keynote conference address. Devoting large parts of his speech to his vision for a new "economic settlement" for the UK and insisting he would lead his party to victory at the 2015 general election, Miliband focused instead on attacking Salmond.The debate about greater devolution was ignored by Ed Miliband, the UK party leader, in his keynote conference address. Devoting large parts of his speech to his vision for a new "economic settlement" for the UK and insisting he would lead his party to victory at the 2015 general election, Miliband focused instead on attacking Salmond.
He said the first minister and the Tories were essentially the same: both wanted to divide the UK. David Cameron, the prime minister and Tory leader, wanted to divide the UK on class and political grounds while Salmond wanted to divide Scotland from the rest of the UK.He said the first minister and the Tories were essentially the same: both wanted to divide the UK. David Cameron, the prime minister and Tory leader, wanted to divide the UK on class and political grounds while Salmond wanted to divide Scotland from the rest of the UK.
Miliband accused Salmond of praying for greater Tory success so it would increase support for independence.Miliband accused Salmond of praying for greater Tory success so it would increase support for independence.
"His is a narrow nationalism that prays for Tory success so that he can convince people that the only way to get rid of the Tories is to get out of the UK … Have you ever heard such a selfish, self-serving, narrow-minded blinkered piece of nonsense?""His is a narrow nationalism that prays for Tory success so that he can convince people that the only way to get rid of the Tories is to get out of the UK … Have you ever heard such a selfish, self-serving, narrow-minded blinkered piece of nonsense?"
Labour, he said, was the only true "one nation" party. It was its task to prove that by offering voters compelling new policies and winning back power.Labour, he said, was the only true "one nation" party. It was its task to prove that by offering voters compelling new policies and winning back power.
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