By Steve Bargeton, political editor

SCOTTISH TORY leader Annabel Goldie was given the green light yesterday to campaign to slash income tax in the run-up to the Holyrood elections next May.

In his speech to the party’s spring conference in Perth yesterday shadow chancellor George Osborne said it was up to them to use the Tartan Tax.

Under the devolution settlement Holyrood has the power to raise or lower the basic rate of income tax by 3p north of the border. But for the last seven years none of the main political parties has committed itself to using the power, although both the SNP and the Scottish Liberal Democrats have pledged to increase tax by a penny.

There is speculation that the Scottish Tories will make cutting income tax by 3p a manifesto pledge for the next Holyrood elections. Yesterday in Perth Mr Osborne made it clear the party in Scotland was free to do so.

“It is because we care about the union that we must now make a success of devolution,” he said. “You must take decisions about tax-varying powers. You must develop the right public services policies for Scotland. Scottish Conservatives know what is best for Scotland. You are in charge.”

In his speech Mr Osborne launched a scathing attack on Chancellor Gordon Brown as he prepared to take over as prime minister from Tony Blair.

He said if anyone wanted to know what kind of prime Minister Mr Brown would make, they need only look in the Chancellor’s own back yard.

“Instead of preparing us for the challenges and opportunities of the new global economy, Labour is taking us in the wrong direction,” he said. “And we here know who is to blame—the member for Kirkcaldy and Cowdenbeath, the roadblock to reform.

“People wonder what kind of prime minister he will be. I say that if you want to see what Brown’s Britain will be like, just look what’s happening in Brown’s own back yard.

“Over half the population wholly dependent on the state for their income.

“Three-quarters of the economy taken up by state spending.

“Wealth-creating private sector employment down, wealth- consuming public sector employment up.

“A bigger proportion of resources taken by the state than in China.

“Life expectancy in parts of Glasgow that is lower than life expectancy in the Gaza strip.

“It is not just a poverty of income but a poverty of hope, health and aspiration.”

Mr Osborne said that Mr Brown was more interested in furthering his own career than in the welfare of the people of Scotland. “I don’t know how much time our Chancellor spends worrying about this any more,” he said. “He’s too interested in his next job to focus on his current job.

“We hear a lot about ‘project Gordon’ these days.

“The fact is this: Gordon Brown can change his shirts, he can change his ties, and he can even change his teeth—but what he really needs to change is the economic policies that are taking Scotland and the rest of Britain in the wrong direction.”

He also took a swipe at the new Liberal Democrat leader Sir Menzies Campbell.

“We won’t get any change of direction from Brown’s friend and neighbour the Liberal Democrat leader,” said Mr Osborne. “He may be new, but his ideas are old.

“And you know what happens when Scottish Labour and Scottish Liberals get together because you see it at Holyrood—an ever-expanding state, unreformed public services, slower economic growth, policies of the past that cannot meet the challenges of the future.”