Anger over LibDems' Tax Policy

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Byline: IAN SMITH

LABOUR launched a withering attack on its Liberal Democrat coalition partners yesterday after they backed plans to pull Scotland out of the UK tax system.

Delegates at the LibDems' Scottish conference voted to adopt 'fiscal autonomy' - making Holyrood responsible for setting and collecting its own taxes - as official party policy.

But Labour, which is strongly opposed to such a move, warned it could see up to [pounds sterling]8billion slashed from the country's public services budget.

The vote, at the LibDem conference in Dundee, was an embarrassment for party leader Jim Wallace, who had hoped to sideline the issue.

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