Scottish Labour in London power grab

SCOTTISH Labour is set to distance itself from the UK party by creating a beefed-up leadership team north of the Border as part of its fightback against a buoyant SNP.

A root-and-branch review of the party structure following Labour's staggering defeat in the May election has heard "a strong case" from activists and members to hand more authority to its Scottish operation to show policies are "made in Scotland, for Scotland."

A majority of grassroots members believe there should be a dedicated Scottish leader of the party, the review has learned, to map out a distinctive agenda. While no decisions have yet been made, a new leader along those lines would not necessarily be an MSP, opening the door for a Westminster figure to take overall charge of Labour's fortunes north of the Border.

The new leader would be expected to have a wider role co-ordinating the entire Labour machine as it tries to recapture ground lost to the SNP. There are also calls for the Scottish party to have complete organisational control over its affairs.

Senior Scottish party sources say they are now "open-minded" about such a change, saying the scale of the defeat to the SNP earlier this year requires all options to be considered.

Some MSPs say they would not object to a Scottish Labour leadership contest including members from outside Holyrood, including MPs. However, if an MP did become leader, party figures suggest they would have to come to the Scottish parliament ahead of the next election in 2016.

The review group, led by shadow defence secretary Jim Murphy and MSP Sarah Boyack, will present its conclusions on reform by the autumn. It has yet to form conclusions, likely to have major knock-on effects for the UK Labour movement as a whole.

But last night one leading supporter of the leadership proposal, Glasgow Labour MP Tom Harris said: "It is simply not credible to stay with the status quo. This isn't a silver bullet. But I think we do need an iconic way of telling voters this is a new start and that our policies are made in Scotland for Scotland."

Another senior party source added: "There is a strong case for that we should have a (Scottish] leader.It hasn't been properly thought through yet but it is true to say that most people think it is what we should be doing."

The move is also supported by former First Minister Henry McLeish, who last month said that "significant changes" were required in the relationship between the UK and Scottish parties to develop a "distinctive identity" for Labour.

He said: "We have to be able to show that within the union we are putting Scotland first in our policies."

The calls for change come amid speculation that Iain Gray could stay on for several more months as Labour group leader at Holyrood to give potential successors more time to emerge from the ashes of May's defeat.

Possible contenders for the post at Holyrood include deputy leader Johann Lamont and Eastwood MSP Ken Macintosh, but no MSPs or MPs have yet put themselves forward.

Last week, Labour claimed that its fightback against the SNP had begun after it held off a strong Nationalist challenge to win the Inverclyde by-election with a majority of just under 6,000 votes.

However, senior sources insist that it would be foolish to assume from the result that "normal service has resumed" and say a complete overhaul of the Scottish party is required if it is to hit back at the SNP in time for next year's local government elections.

As well as the position of leader, the review led by Murphy and Boyack is also considering the funding and organisation of the Scottish party, both of which have come second best to the SNP in recent Holyrood elections.

The review is also expected to provide plans for Labour's local government election campaign amid warnings from activists that the party could suffer widespread losses to the Nationalists.

This week, First Minister Alex Salmond will maintain the pressure on his beaten opponents by making a direct appeal to Lib Dem voters to "find a home" with the SNP.

It comes after the Lib Dems secured just 627 votes in Inverclyde, losing their deposit. The party's 2.2 per cent share of the vote was their lowest in a by-election since 1989.

Praising what he describes as the "rich and radical Scottish Liberal tradition," Salmond will claim that Liberal Democrat supporters "no longer recognise their party, and do not understand why the leadership in Scotland takes the side of the Tories".

He will add: "Former Lib Dem supporters are finding a very welcome home in the SNP, and we hope they will be joined by many more in our work to build a fairer, more successful Scotland."