Labour MSPs win battle for Holyrood powers

LABOUR MSPs have won a battle against their MPs to keep hold of their powers ahead of a major review of the Scottish Parliament.

The party will agree this week that none of Holyrood's current powers should be handed back to Westminster, as some of its MPs had wanted.

Chief among them were powers over the siting of nuclear stations, currently held by Edinburgh, which are being used by the current SNP Government to block any new installations being built north of the border.

The MPs had argued that, such were the dangers to Scotland's future energy supply, the nuclear veto should be handed back to Westminster.

But a submission to be given to the Calman Commission – the body examining the powers of Holyrood – will say that the party backs the status quo.

Labour's submission, which has still to be signed off, will also give cautious backing to the idea of Holyrood getting more financial powers. A senior party source said: "It is desirable that a mechanism is found that makes the Scottish Parliament more accountable. We have an open mind on financial mechanisms."

But the document will stop short of recommending specific new powers – such as those over borrowing – saying it is for the commission to make recommendations. The moves come amid growing signs the left wing of the Labour party is preparing to seize on the financial crisis to push its agenda.

In Scotland, a new movement, to be unveiled next week, will campaign for Labour to dump PFIs, end all privatisation of services and back nuclear disarmament.

Left-wingers are also targeting next week's meeting of the party's national policy forum to demand the party re-think its relationship with the private sector. Ministerial plans to part-privatise the Royal Mail could be ditched as a result.

The new movement, the Scottish Labour Representation Committee, is understood to be backed by several MPs and MSPs. It wants to restore an economic policy based on public ownership.