Tax Continues To Dominate Devolution Debate

Tony Blair visiting a primary school this morning

Both party leaders have had to face questions on the proposed Parliament's tax-varying powers, following the statement of the Director of the Scottish CBI, Iain McMillan: "Tony Blair is saying that the case for devolution has been made from a business point of view. The view of the council of CBI Scotland is that the case has not been made."

Mr Blair rejected this argument, saying, "I can't think of many or indeed any legislative bodies that don't have some form of revenue raising power." He suggested that the tax-varying powers would "be good for inward investment because Scotland would then have a strong voice."

Lord Fraser claims victory on tax powers

This afternoon No, No Campaigners claimed that they had won the argument on the tax question. Lord Fraser of Carmyllie, at a press conference in Edinburgh, attacked the Prime Minister's pledge that a Labour dominated Scottish Parliament would not raise taxes within the first five years of a Parliament. He said "Tony Blair.... can no more stop tax rises in an Edinburgh Parliament, than he can halt Labour-run councils increasing the council tax next May."

Alex Salmond, leader of the SNP attacked the No, No campaign claiming that it lacked grass-roots support. He told BBC Scotland, "The Yes, Yes campaign is a people's campaign, the No campaign is basically on the electronic media."