Ed Balls says SNP deal is ‘inconceivable’

Shadow Chancellor Ed Balls. Picture: John Devlin

In an interview with The Scotsman, Mr Balls gave the strongest rejection yet by a Labour frontbencher of any deal with the SNP and made it clear that a Labour minority government would let the SNP to decide themselves whether to back an Ed Miliband government or not without agreeing to concessions.

Mr Balls also warned that he has “no doubt” that the Tories will offer the SNP a version of full fiscal autonomy for Scotland to cut £8 billion from the Scottish budget and bring an end to the Barnett formula which has given Scotland a higher share of public money from Westminster than England and Wales.

And the shadow Chancellor also made it clear that he does not believe the new powers agreed by the Smith Commission will mean Scotland has its own income tax as claimed by others.

Rejecting Tory calls for an English rate of income tax he said the proposal was “ridiculous” and “based on a flawed premise” because the Smith proposals “do not create a Scottish income tax”.

Instead he claimed that “income tax is a UK tax which the Scottish Parliament will have powers to vary.”

But amid continued claims by the Conservatives that “Alex Salmond will write a Labour Budget”, Mr Balls made it very clear that he sees no room for deals with the SNP.

He told The Scotsman: “I think that it is not only unlikely there will be a deal but it is inconceivable.”

He went on: “We know from the SNP depute leader Stewart Hosie what the game plan is for the Nationalists.

“They just want to do anything they can and disrupt parliament to be able to get their second referendum.”

He added: “There is no way a Labour government could compromise or make agreements with a party set on breaking up the United Kingdom.”

With Labour set to lose many or all of its 41 seats in Scotland, Mr Balls also suggested that the SNP’s preferred option was for the Tories to return to government.

He said: “I think the SNP want independence and that is helped by five more years of David Cameron and George Osborne.”

On Ms Sturgeon’s plans to vote for full fiscal autonomy, giving Scotland total control over all tax and spend but sharing defence and foreign affairs, Mr Balls warned the Tories would be attracted by the £8 billion cut in the Scottish budget the change would bring according to independent experts.

He said: “I would say to the SNP beware what you wish for.”