Nicola Sturgeon’s revelation that SNP MPs at Westminster could vote for full fiscal autonomy for Scotland as early as next year was the “first genuine big moment” of the election campaign in Scotland, Labour’s Jim Murphy has said.
The Scottish Labour leader claimed Ms Sturgeon made a “stupid strategic error” when she confirmed in a TV debate she wanted Holyrood to have full control over tax and spending north of the border.
Under full fiscal autonomy, Scotland would be responsible for raising enough cash to cover all of the country’s public spending – with Labour claiming research by the Institute for Fiscal Studies shows this would leave a £7.6 billion blackhole in the nation’s finances.
Mr Murphy challenged the SNP leader on the issue in two back-to-back TV leaders’ debates, which he said had left Labour with a “spring in our step”.
The party north of the border is trailing well behind the nationalists in opinion polls, which suggest it could lose the majority of its 40 Scottish seats in the General Election on May 7.
Ms Sturgeon’s comments on full fiscal autonomy were “a very big moment” in the campaign, the Scottish Labour leader said.
“In Scotland it’s the first genuine big moment of the campaign and we’re going to press on with this argument.”
Ms Sturgeon said in a BBC Scotland debate that she would like full fiscal autonomy for Scotland “as quickly as the other parties agree to give it”.
Mr Murphy asked the SNP leader: “Would your MPs vote for it next year?”
She replied: “I would vote for it, would you support it?”
Mr Murphy said Labour would “absolutely not” back the change, adding his party would fight for the Barnett formula, which determines how public cash is distributed across the UK, to remain in place.
The Scottish Labour leader, who was campaigning in Cumbernauld, North Lanarkshire, said: “What we saw last night in the debate was Scotland’s First Minister admitting under her plans Scotland would be £7.6 billion worse off – it’s full fiscal austerity.
“We will oppose Tory austerity by the front door and we will also oppose the SNP’s austerity by the back door. We will keep the Barnett formula today, tomorrow, forever.”
Mr Murphy continued: “There’s no way on earth we will vote for full fiscal austerity, or full fiscal autonomy.
“It’s more than £7 billion of cuts for Scotland. Why would anybody who loves our country want to cut that £7 billion?”
He also argued that changing the way services in Scotland are funded would mean the end of the UK pensions and benefits system north of the border.
“If the SNP have their way, you would have the abolition of the UK state pension here in Scotland and the abolition of UK benefits,” he claimed.
“Full fiscal autonomy was always a nice-sounding advertising slogan in search of a policy – well, it’s found a policy now and it’s £7.6 billion of cuts and the end of the UK pension system.
“Between now and polling day, no one is going to be left in any doubt that if you vote for the SNP, you are voting to opt out of the UK state pension system. That is awful news for Scottish pensioners.”
He insisted only Labour could prevent Conservative Prime Minister David Cameron winning a second term in office but added: “In this race, David Cameron can’t win seats in Scotland, he has to have someone to win seats for him.
“In this contest he’s hoping the SNP can defeat Labour in Scotland and that it propels David Cameron back into Downing Street.
“I’m confident after these debates that we have a spring in our step, we have the arguments on our side, we have the truth on our side, and we’re the party with momentum and self-belief.”