The SNP have accused Labour of suffering an 'identity crisis' over controversial tax and spending powers for Scotland.

 

The claim followed a call from one of the party's candidates to be deputy Scottish leader for an "open discussion" on Full Fiscal Autonomy (FFA).

The SNP also pointed to Labour's decision to abstain on a vote on FFA in the Commons.

Labour opposes the policy, which would leave the Scottish Government reliant solely on taxes raised in Scotland to meet its spending commitments and which experts warn could see Scotland lose billions of pounds a year.

The SNP voted for their own amendment and that of a rebel Tory backbencher Sir Edward Leigh.

Both amendments were defeated by the Conservatives.

Mr Rowley, the MSP for Cowdenbeath, was quoted as saying: "Rather than arguing for what powers should come from Westminster to Scotland, we should instead be arguing what powers should be kept at Westminster.... Post-Smith we need to have an open discussion, including about Full Fiscal Autonomy."

SNP MSP Stewart Maxwell said: "Labour are all over the place on more powers for Scotland - they are facing an identity crisis, but they should use this confusion as an opportunity for change."

Labour accused the SNP of hypocrisy for voting with Tory MPs.

Meanwhile, Scots Tory leader Ruth Davidson has warned the SNP's demand for devolution of a range of business-related taxes would turn Britain into a "tax avoider's paradise."

She said the Nationalists' call for Holyrood to control corporation tax, National Insurance contributions and capital gains tax was a "shambles".

Ms Davidson spoke out after Finance Minister John Swinney unveiled details of the "priority devolution" he wants on top of measures included in the Scotland Bill, now going through Westminster.

In a letter to David Mundell, the Scottish Secretary, he indicated his desire to cut employers' National Insurance contributions across the board and introduce targeted cuts in corporation tax for firms investing in new facilities or research and development.

He also suggested capital gains tax should be used to offer generous tax breaks to wealthy entrepreneurs who sell their businesses.

Ms Davidson said: "As with its plans for full fiscal autonomy, the SNP's plan for the devolution of more business taxes to Scotland are a shambles.

"On the one hand, the Nationalists attack the UK Government's tax and spending plans.

"On the other, they are committed to a plan which would turn Britain into a tax-avoiders' paradise."