Labour will bid to introduce a 50p top rate of tax and raise the basis rate by 1p with an amendment to the Scottish budget later this year.

Kezia Dugdale, in a speech to the Labour UK conference today, will outline the plan she says is the answer to stopping public sector cuts.

Derek Mackay will bring forward his first draft budget as Finance Secretary in December which Ms Dugdale says Labour will oppose unless it uses new tax powers to raise additional income.

The Scottish Greens are in favour of using the powers as are the LibDems who could support the Labour bid.

However, with Nicola Sturgeon and the SNP already stating they won’t raise the basic rate and the Tories against setting a higher tax rate in Scotland than the rest of the UK, it is unlikely to win enough support to be successful.

The plan is for a 50p rate for earnings over £150,000 and raising the basic rate to 21%.

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Ms Dugdale will tell the conference, in Liverpool, today she will not support an austerity budget that passes on Westminster cuts when the Scottish Parliament now has the power to raise tax.

She is expected to say: ““With the cuts coming down the track from Holyrood, local Government is set to lose £1 billion over the course of this Parliament.

“Our health service is already beginning to show signs of strain as hospitals across the country face cuts or closure.

“When it comes to our schools, the SNP Government continue to refuse to protect the education budget.

“Conference, I accept what Nicola Sturgeon says about these cuts coming from Westminster. I don’t question that. What I do question is her refusal to do anything about it.”

Ms Dugdale will address the conference two days after Jeremy Corby was re-expected leader with a bigger majority than last year taking 61.8% of the vote against challenger Owen Smith.

Ms Dugdale who did not back Mr Corbyn for leader said he can win a General Election if he is serious about uniting and working with others in the party

She said, following his win on Saturday: “"Jeremy can unite the Labour Party, but he needs to want to unite it.

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“That means he needs to work with both the party across the country and MPs to provide an effective opposition to the Tories in Westminster.”

She said it will be a difficult task but not impossible.

Adding: “We can't fight the Tories when we are fighting each other."