TAX NEWS - June 2010

David Miliband backs extra Scottish tax powers

David Miliband, the bookies' favourite to become the next Labour leader, has backed plans for Scottish ministers to be handed control over income tax.

The former Foreign Secretary said the Calman Commission's recommendations were "excellent" and would result in a redistribution of power to Scotland.

He also said Labour's UK chiefs have a "lot to learn" from the success of the Scottish party in the general election, which saw it win 41 of the 59 seats north of the Border.

Mr Miliband was speaking during a visit to the Scottish Parliament, ahead of a hustings in Glasgow on Sunday involving all five candidates for the Labour leadership.

The new coalition Government has promised to implement the Calman recommendations, giving Holyrood power over income tax, air guns and drink-drive and speed limits.

"The Calman report was excellent. I've always believed that the redistribution of power, as well as the redistribution of wealth and opportunity, is an important part of Labour's message," Mr Miliband said.

"I see the growing strength of devolution as being a complement to a genuinely United Kingdom."

The South Shields MP added: "The Scottish Labour Party had fantastic results on May 6 and the reason I'm here on the day after nominations close is that it's important that the UK Labour party learns from success."

The other leadership candidates are his brother Ed, the shadow energy secretary, Ed Balls, shadow education secretary, Andy Burnham, shadow health secretary, and Diane Abbott, a left-wing backbencher.