SCOTTISH Labour are facing ­pressure from within to push for a wider package of powers to be devolved to Holyrood when the parties meet for crunch talks on Wednesday.

A new group of activists, Labour for Scotland, believes the party leadership should go further in supporting the devolution of tax, welfare and employment powers.

The five parties represented at Holyrood will gather around the negotiating table for the first time as part of Lord Smith of Kelvin's efforts to agree a way forward.

Labour have been criticised for presenting the most cautious set of proposals, a charge the leadership rejects.

But Labour for Scotland supporters - including a number of past and present MSPs and senior trade unionists - have called for a more adventurous approach.

The group has no formal devolution manifesto of its own but, said former MSP Pauline McNeill, supporters are open-minded about Holyrood gaining full control over incomes tax rates and bands, a position that would bring Labour into line with the Conservatives and Liberal Democrats.

Ms McNeill, who spoke at the group's inaugural meeting at the weekend, also called on Labour's negotiators to consider giving Holyrood greater control over welfare and employment law.

Scottish Labour go into Wednesday's meeting backing a complex mechanism for handing Holyrood control over 15p of the basic 20p rate of income tax and flexibility to raise but not cut the top rate.

Among other measures, Labour want Holyrood to be put in charge of employment tribunals and, like the other parties, backs the devolution of housing benefit.

Ms McNeill said: "One of the key themes from Labour for Scotland is to get behind a stronger, more far reaching position in the Smith commission."

But she added: "We need to get the balance right between devolving substantial tax powers and making sure that does not undermine the case for remaining in the UK."

The MP Gregg McClymont and MSP Iain Gray will represent Labour in the all-party talks. Lord Smith is attempting to broker a deal on more powers for Holyrood by the end of November, allowing draft legislation to be in place by the end of January.

Around 80 Labour members were at the launch of the new grouping on Saturday.

They have not criticised Johann Lamont but the call to adopt a more radical approach to the Smith Commission heaped further pressure on the Scots Labour leader following comments at the weekend by former first ministers Jack McConnell and Henry McLeish.

Lord McConnell said Labour must now rediscover its "sense of purpose". And Mr McLeish added: "A lot of Labour voters don't know what the party stands for."

In a separate sign of Ms Lamont's difficulties, Jim Murphy, the Shadow International Development Secretary, had to quash calls for him to take over as leader, saying: "I think we've got a perfectly good leader in Johann Lamont."

Shadow Scottish Secretary Margaret Curran insisted the party was changing. Writing in a Sunday paper, she said the party would fight next May's General Election on "bold and radical" pledges to improve people's lives, including an energy price freeze.

Ms Lamont, who will mark three years as leader in December, said she welcomed debate about the state of the party but added: "If we turn in on ourselves and become inward at a time when the people of Scotland are looking for us to unite the country they will not forgive us."

SNP MSP Sandra White said: "Johann Lamont's week went from bad to worse - the whispering campaign against her leadership is growing louder by the day."