We need solidarity, not isolation – Ed Miliband

ED MILIBAND will today argue Scotland should continue to pool its taxes into the UK pot so that poorer parts of the country remain supported by wealthier areas.

In his keynote speech to the Labour conference in Dundee, the party leader will say he wants to keep the “redistributive union” which ensures cash is transferred across England, Wales, Scotland and Northern Ireland.

He will say: “I believe, and I believe that people across the United Kingdom believe, that we owe obligations to each other – that the successful Scottish entrepreneur owes obligations to the child born into poverty in London, and the pensioner in Wales.

“Right now, every nation of the UK needs not isolation but solidarity.”

The call comes with Scottish leader Johann Lamont having expressed scepticism about extra forms of devolution, including so-called “devo-plus”, in which many more taxes raised in Scotland would be sent back directly to the Scottish Government to spend.

Mr Miliband’s comments reflect those made by Prime Minister David Cameron two weeks ago on a visit to Edinburgh when he also backed the “fiscal union” across the UK.

Mr Cameron said that while he believes further powers for Holyrood should be “on the table”, he wanted to keep the “solidarity” across the UK.

Mr Miliband will also warn today that different tax systems on either side of the Border could create a tax-cutting war between Scotland and England.

He will add: “If we are going to create a fairer tax system, we must avoid the race to the bottom on tax rates that separation would import.

“Throwing up new borders won’t make Scotland fairer. If we are going to build an economy that works for working people, we have to do it together.”