Scottish Labour: Johann Lamont rejects devo-max option

Speaking on the eve of the Labour conference in Dundee, she said she wanted a devolution settlement that saw resources “redistributed from the south-east of England to Scotland”, along the lines of the existing arrangement of the annual block grant from the UK.

Ms Lamont also hinted that Scottish Labour would not back the “devo-plus” campaign, which has been supported by some senior figures from opposition parties, including Tory former Holyrood presiding officer Alex Fergusson and the Scottish Liberal Democrats’ former finance spokesman Jeremy Purvis, who has talked about the need to “end the dependency” on the Westminster block grant.

However, Ms Lamont was urged last night by former Labour First Minister Henry McLeish to “embrace” much stronger economic powers for Holyrood and to back a referendum option that is “neither independence nor the status quo”.

There was also a stark warning from Labour-supporting think tank the Fabian Society that it would be a “mistake” not to back the devo-plus option, under which Holyrood would be handed control of most taxes, including income and corporation tax.

Labour MSP Duncan McNeil, who signed up to the devo-plus campaign, as did former Scottish Lib Dem leader Tavish Scott, said “many” members of Scottish Labour would be “supportive” of the proposals.

But Ms Lamont said she would “not be painted into a corner” over Labour’s position on more powers for Holyrood, as she hinted that she favoured the existing funding arrangements for Scotland.

“The debate around the powers can’t be about a virility symbol of how many powers are being called for,” she said. “It has to be about what’s the best economic approach – that’s the test. There’s a need to ensure that resources are redistributed from the south-east of England to Scotland.

“We have to look at where power lies and ask whether these powers allow us to tackle economic inequality, and we won’t be painted into a corner where we are told that if you oppose independence you oppose all devolution.”

Ms Lamont insisted Scottish Labour “wouldn’t support” the option of devo-max, which she described as a form of independence.

However, Mr McLeish called on Ms Lamont to “lead the debate” on more powers for Holyrood in the run-up to the independence referendum.

He said: “We should be less concerned about whether it’s devo-plus or devo-max, but Labour has to lead the debate on the future for Scotland, which is neither independence or the status quo.

“Labour is the party that delivered devolution in 1997 and the party now has to embrace devo diversity and see how we can lead and develop the debate.”

Marcus Roberts, deputy general secretary of the Fabian Society, which is to launch a campaign for devo-plus at Scottish Labour’s conference this weekend, called on Ms Lamont to back the proposals.

He said: “Johann Lamont has got to make her own decisions, but if she isn’t thinking very seriously about examples of improving powers for the Scottish Parliament within the Union, it would be a mistake.”