Murphy’s plan to devolve income tax control

By Paul Malik

Scottish Labour leadership candidate Jim Murphy has said he understands how much Scotland desires “change” in a speech proposing devolution of income tax powers made this morning.

Announcing from a campaign office in Glasgow, the MP for Falkirk said his proposal to devolve full powers over income tax if he was elected leader was a “big moment for the Scottish Labour Party and a big moment for Scotland.”

He said the commitment to introduce the powers, a policy previously opposed by the Scottish Labour Party, would show Scotland that Labour have “changed”, that they now “get it”, and, with him as leader, they will “stand up for Scotland”.

Mr Murphy said: “The difference between Scottish Labour and our opponents when it comes to constitutional reform is that we have never seen it as an end in itself but as a means to an end.

“We want the best constitutional settlement for Scotland because we want the best deal for Scotland.

“Our interest is in making devolution work, not simply in taking with one hand and demanding more with the other, regardless of the consequences.

“Even before the Smith Commission reports, we should agree to the full devolution of income tax to Scotland, if that is what emerges.”

A spokesman for Neil Findlay MSP, who is also in the running for leadership, said Mr Murphy’s stance on full devolution of income tax powers was “understandable”, but that if this was achieved, the party needed to ensure that Scotland was not “worse off.”

Mr Findlay’s spokesman said: “It’s all very well devolving [full control over income tax] but we’ve got to make sure that Scotland isn’t worse off.

“We have to ensure that as well as having the constitutional willingness for change, we also have the political willingness to prioritise change.”

The SNP have said that the people of Scotland “rightly expect” these powers and that in the past, Scottish Labour offered “less than the Tories.”

Stewart Maxwell MSP of the SNP said: “Voices across civic Scotland have already backed the devolution of extensive powers over tax and welfare, and people in Scotland rightly expect to see a broad range of taxation powers transferred beyond income tax.

“If Labour have now caught up on this one aspect, having offered even less than the Tories, I hope that they will back the calls by many independent organisations in Scotland for other tax and welfare powers to be devolved, such as the minimum wage.”

At a hustings event on Sunday, Mr Murphy said that Scottish Labour must “match” the “energy” that the SNP have for “constitutional nationalism” and appeal to the “hundreds of thousands of decent people who voted Yes, but are not nationalists.”

Mr Murphy has based his campaign on “bringing Scotland together”.

However, several senior Labour Party members have warned against the devolution of income tax powers.

Former Prime Minister Gordon Brown MP said that the move was a “Tory trap”.

The leadership campaign was triggered after former Scottish Labour Leader Johann Lamont resigned, claiming that several senior Labour Party MP’s were “dinosaurs” who treated the Scottish Labour Party as a “branch office”.

The Smith commission was set up in an effort to “further strengthen the powers of the Scottish Parliament within the UK” after Scotland voted to remain a part of Britain after September’s referendum.

The report is being compiled by Lord Smith, a cross party independent member of the House of Lords.

 

 

 

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