Scottish Labour conference: Tories and SNP mean race to bottom, says Miliband
Labour leader Ed Miliband's comments will come in a speech to the Scottish Labour conference on Friday Scottish independence and a Tory win at the next UK election would force the country into a "race to the bottom", Labour leader Ed Miliband will say.
Mr Miliband will argue such an outcome would leave Scotland and the rest of the UK having to compete on cutting taxes and wages to compete globally.
He will make the comments in a speech to the Scottish Labour conference on Friday.
The party gathering comes ahead of the Scottish independence referendum.
On 18 September, voters in Scotland will be asked the Yes/No question: "Should Scotland be an independent country?"
Mr Miliband will attack the Scottish government, which wants to cut business tax, for refusing to match Labour's plans for an energy price freeze or restoration of the 50p tax rate on income above £150,000.
Scottish Labour has put forward plans to give Holyrood more powers in the event of a referendum "No" vote At the same time, he will say Scottish Labour has put forward new plans to strengthen the powers of the devolved Scottish Parliament, which would work with a Labour Westminster government to boost social justice across the UK.
The Labour leader will tell delegates in Perth: "Think how hard it would be to stop a race to the bottom happening if, on one island, we had a border running along the middle so we were divided in two.
"It would be two lanes in a race to the bottom - with David Cameron and Alex Salmond at the starting blocks - in which the only way they win is for you to lose.
"If Scotland was to go independent, it would be a race to the bottom not just on tax rates, but on wage rates, on terms and conditions, on zero hours contracts, on taking on the energy companies, on reforming the banks.
"Those who can afford it will be paying less, while hardworking families across Scotland will pay more and see their services suffer."
Mr Miliband will say of the Scottish first minister: "Alex Salmond, who claims to be a great social democrat, would end up running the same race to the bottom that the Tories have embarked upon.
"The SNP talk about social justice but they can't build it - because they can't be narrow nationalists and serve social justice at the same time."
Mr Miliband's speech will come after Scottish Labour this week unveiled a plan to increase the financial powers of the Scottish Parliament, after a referendum "No" vote.
The proposals included:
- Giving MSPs the power to vary tax rates by up to 15p in the pound, giving Scotland control of three quarters of the 20p basic rate of income tax
- Devolving housing benefit to abolish the under-occupancy penalty, which opponents have dubbed the "bedroom tax"
- Giving the Scottish Parliament control over the administration of its own elections.
The Labour leader will say: "A Labour government for the UK and a Scottish Labour government will be two governments working together on common challenges - not wrestling against each other - but never resting until we have built the more just and equal society that every part of the United Kingdom should be."
Mr Miliband will also pay tribute to former party leader and Scottish Labour MP John Smith, who died in 1994 at the age of 55.
Mr Miliband will pay tribute to the legacy of former Labour leader John Smith "John Smith was a man who passionately believed in social justice in Scotland - and in the United Kingdom," he will say, adding: "Twenty years on, that flame of social justice still burns. And we can honour his legacy by winning the fight for Scotland to remain in the United Kingdom."
Mr Miliband will also use his speech in Perth to talk about his own links to Scotland, which saw his father train in the Royal Navy during World War Two at Inverkeithing.
"I passionately believe in Scotland staying in the United Kingdom," he will say.
"It is a belief rooted in the history and bonds that we share together across this United Kingdom: a history that has enabled us to fight better for equality and social justice across this United Kingdom."
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