Labour in Scotland is on a collision course with Westminster after leader-elect Wendy Alexander yesterday declared herself open to strong new financial powers for Holyrood.
Labour in Scotland is on a collision course with Westminster after leader-elect Wendy Alexander yesterday declared herself open to strong new financial powers for Holyrood.
"I welcome the debate about Scotland's constitutional future. The fundamental divide in Scotland is between those who want to reform the UK and those who wish to exit it," she said.
Ms Alexander was speaking in Stirling after nominations for the post of successor to Jack McConnell as leader of Labour in the Scottish Parliament closed without a challenger coming forward.
She will now embark on a series of unopposed party hustings round the country, starting in Inverness tomorrow, to put across her vision of Labour's future following the election defeat in May.
She pointed out that she had been one of the few Labour MSPs to write in the past about the case for stronger financial accountability for politicians at the Scottish parliament. "Other countries around the world have found other solutions as to how they should strengthen the accountability of their politicians," she said.
While she spoke of the need to "wait and see" how the debate over Holyrood powers developed, was she saying that she was prepared to look at what has been termed "fiscal autonomy" for the Scottish parliament?
"Yes," she said. "There needs to be a dialogue within the UK."
"Times change," she argued, saying that recent issues such as terror attacks by al Qaeda or climate change were not around when as a special adviser to Donald Dewar she worked with him on the original Scotland Act.
"Therefore having a fresh look at the settlement does not hold any anxieties for me," she said.
This is a very different tone from that struck by Scottish Secretary Des Browne who appeared to argue this week for no change in the devolution settlement. "This settlement for Scotland, which was hard fought and which we delivered, has shown itself to have an innate flexibility which allows it to serve the needs of the Scottish parliament," he said.
This was interpreted as a rejection of any change in the balance between reserved and devolved powers. This was not discouraged by a further comment: "My view is that the practical needs of the Scottish people can be accommodated within this settlement," although an aide stressed last night that this was not "a policy edict".
But Ms Alexander may face a struggle to bring all in her party with her as she seeks to come to terms with May's defeat.
She stressed yesterday the point Mr Browne had been making was that the issues that matter most to people such as health and education should not be neglected in "the rush to someone else's agenda".
It was a clear attempt to direct the fire away from Mr Browne and in the direction of First Minister Alex Salmond. "There is little appetite in Scotland for politicians who put their own agenda first," she insisted.
She also said that it was worrying that the recent white paper from the SNP government appeared to be a "one-way bet on North Sea oil", but pressed again on her willingness to engage in a debate about more powers for Holyrood she said on the issue of broadcasting: "I welcome the debate and will listen to all the arguments put."
Ms Alexander's persuasive powers may also be put to the test with councillors and trade unionists. One of her stated strategy aims yesterday was for "consumer, not producer focused public services" - an aim which will be viewed with deep suspicion by public service, health and teaching unions, all key traditional parts of the Labour movement.
She also spoke of her desire to "empower people and communities" rather than institutions, citing the SNP's local income tax proposals as an onslaught on councillors.
But having addressed a meeting in Stirling of Labour council leaders - a meeting The Herald understands they did not know she would be attending - few stayed around for what was in effect her coronation as leader-elect.
