Scottish voters should be given a 2p tax cut to help them cope with the credit crunch, according to the new leader of the Scottish Liberal Democrats, Tavish Scott.

Scottish voters should be given a 2p tax cut to help them cope with the credit crunch, according to the new leader of the Scottish Liberal Democrats, Tavish Scott.

Determined to make an impact, Mr Scott used his first major speech as leader to call for the Scottish Parliament to use its tax-levying powers to lower income tax in Scotland, saving the average family more than £300 a year.

He challenged other parties to follow him out of the "comfort zone" and join the LibDems in implementing the £800m cut in this year's Scottish budget.

Warning that Britain's economy was in "meltdown", Mr Scott said: "We should use the Scottish Parliament's power to cut income tax by 2p in the pound, putting money back in the pockets of people who need it most. That is my practical ambition. People are tightening their belts. It's right that government does as well."

His plans were immediately condemned by rival parties, who asked where the funding would come from. His speech also caused some confusion at the LibDem conference in Bournemouth, where the UK party is already proposing the equivalent of a 4p cut in tax should it gain power.

Asked if this would mean an effective 6p tax in Scotland under the LibDems, Mr Scott admitted that "you could add the two together".

He continued: "We want to go further in Scotland because we have that ability. If other parties join us, we could do this in Scotland now."

The announcement bounced the LibDem's UK leadership with Vince Cable, the shadow chancellor, saying he had been given a "courtesy call" to let him know about the plan but was to meet Mr Scott yesterday to talk details.

Mr Scott said savings for the £800m tax cut, which would cost more than £30m to administer through the revenue system, would come from dismantling quangos, making efficiencies in infrastructure projects and from Barnett consequential payments from Westminster.

"We take the view that there are more savings to be made on the £14bn of infrastructure projects and we have made conservative estimates of the (Barnett) consequentials that are projected to flow to Scotland in the coming years," said Mr Scott.

Alex Neil, an SNP member of Holyrood's finance committee, said Mr Scott's move had all the hallmarks of an ill-thought out policy. "Soundbites don't make for sound house keeping," said Mr Neil. "It's only a couple of years since the LibDems' policy was an increase in income tax when the standard rate was higher. Now they are calling for an income tax cut which would equal large spending cuts."

Other parties attacked the LibDem leader for contemplating a deal with the SNP on local income tax which, they said, would be another burden on voters.

Iain Gray, the new leader of Scottish Labour, said Mr Scott's tax-cutting move left his party alone defending public services.

He said: "It is easy to propose a gimmick like a 2p tax cut but at what cost to public services, which have already been hit by the SNP government's council tax freeze?

"I have said I will review the council tax policy, but Labour believes in a property-based tax."

Scottish Conservative leader Annabel Goldie greeted the proposal with mocking irony, given the LibDems' willingness to negotiate with the SNP on a local income tax.

"Tavish Scott had made a desperate attempt to find some relevance in Scottish politics," said Ms Goldie. "This call needs to be taken with a large pinch of salt. The LibDems have just spent the last week in talks with the SNP trying to introduce extra income tax to Scotland to make us the highest taxed part of the UK."

Diary

• Tavish Scott, Viking chieftain of the Scottish LibDems, had some good gags in his speech to the Bournemouth conference, although his opponents will probably say that his plan for a 2p tax cut for Scots is the biggest joke of all.

He started on a topical subject, by saying that he wanted to talk about Cern and sub-atomic particles, but that's enough about the Scottish Tories.

He couldn't forgive the Tories, though, for supporting last year's SNP budget. In an echo of Sarah Palin's pitbull and a hockey mom allusion, he said the only difference between Alex Salmond and Annabel Goldie was lipstick.

• Tavish also had the grace to pay a special tribute to two lost giants of Scottish Liberalism, Ray Michie and Russell Johnston, who both died this year and are fondly missed by LibDems everywhere.

Well, Russell, a keen Europhile, was often missed even when he was among us. "Russell's in Brussels" was the well-worn line.

• On to the cliff top for a Scottish LibDem photo op with a large cheque representing the £300-plus the average family would save under Tavish's 2p tax haven scheme.

Right on cue, that enduring symbol of Scottish maritime heritage comes around the corner into Poole Bay and docks at the Bournemouth pier below.

It's only the Waverley, the pride of the Scottish fleet, and the world's last seagoing paddle steamer. Talk about putting a kilt on a picture. Ach, but the chance is wasted on the LibDems.

• Doing the sums in the press centre, the Scottish hacks inform their various newsdesks that Tavish's 2p plus Vince's 4p means a 6p deduction in tax for Scots if - big if - the LibDems gain power. Some English colleagues overhear.

"What are you going to use the money for - raising Hadrian's wall to keep us out?" Or, as one senior Scottish LibDem put it to me: "Soon the taxman will be giving us money."