Labour leader Ed Miliband to claim a "Yes" vote would create a "race to the bottom"

Ed Miliband
Ed Miliband will speak at his party's conference in Perth Photo: PA

A 'Yes' vote in the independence referendum would create a border between Scotland and England with Alex Salmond joining David Cameron in a “race to the bottom” - competing to give tax breaks for the richest - Labour leader Ed Miliband will claim tomorrow.

Mr Miliband is planning to tell his Scottish party conference in Perth tomorrow (Friday), that Labour's plans for social justice will create a "race to the top" in Scotland and the whole of the United Kingdom.

In exerts from his speech released by the party tonight, Mr Miliband will set out his claim that the next Labour government will make Scottish Labour's proposals for substantial new powers for Scotland’s Parliament a reality.

The Labour leader is planning to say: “This is no ordinary time and no ordinary conference for reasons we all know because in 180 days Scotland will determine its future. It is Scotland's decision - and Scotland's alone. But everyone in this Labour Party knows we’re better together.

“When we’re in need, we don’t ask whether we are Scottish, English, Welsh or Northern Irish, we look after each other. And, in the same way, we will build prosperity for the future and for every part of the United Kingdom in a race to the top by creating those good, high-paying jobs that people should expect.”

He will highlight what he claims is the SNP's refusal to match Labour’s plans for an energy price freeze or even restore the 50p tax rate on income above £150,000.

Mr Miliband will claim that Mr Salmond says to do so would make Scotland less competitive on tax against a Tory government in the rest of the UK.

The Labour leader is planning to add: “Think how hard it would be to stop a race to the bottom happening if, on one island, we had a border running along the middle so we were divided in two.

"It would be two lanes in a race to the bottom - with David Cameron and Alex Salmond at the starting blocks - in which the only way they win is for you to lose.”

“Alex Salmond who claims to be a great social democrat would end up running the same race to the bottom that the Tories have embarked upon. The SNP talk about social justice but they can’t build it - because they can’t be narrow nationalists and serve social justice at the same time.”

Responding to the details of Mr Miliband's speech, the Scottish National Party pointed to a new poll figures published tonight by Newsnet Scotland, a group set up to promote major constitutional change in Scotland.

The Panelbase survey shows that 45 per cent of people in Scotland believe that Labour has been damaged by being associated with the Conservatives in the 'No' campaign.

According to the poll, that compared to just 24 per cent who do not believe that the party has been damaged.

SNP Westminster leader Angus Robertson MP said: "Their alliance with the Tories has backfired badly on the Labour Party.

"By a majority of two-to-one, people in Scotland believe that Labour have been damaged by ganging up with the Tories in the anti-independence campaign - which is two-thirds of people excluding 'don't knows' ".

Mr Robertson added: "A Yes vote in September is about achieving the powers to build a fair society and prosperous economy in Scotland - and having relationship of friendship and equality with the rest of the UK.

"It is a positive vision, which is already attracting the support of over a quarter of Labour voters - and the gap between Yes and No is now down to just 5 points.

"Labour, by contrast, have chosen to stand with the Tories instead of standing up for Scotland - and are paying a heavy price for that foolish decision."