Election 2015: No deal as labour say SNP want second referendum

Ed Balls ruled out any deal including the informal 'confidence and supply' arrangement during a speech in Glasgow.

Mr Balls said Labour was making it clear SNP demands were fundamentally different to what Labour wanted.

He spoke as Nicola Sturgeon said the 'Westminster parties' were panicking and treating the voters with contempt.

Mr Balls spoke at Glasgow Royal Concert Hall with Scottish Labour leader Jim Murphy and Shadow Scottish Secretary Margaret Curran.

He said: "No coalition, no deals, no agreements. They want something fundamentally different from what's in our manifesto.

"We are not getting into any of it, deals, pacts, confidence and supply."

Mr Balls said the SNP manifesto commitments were at odds with its desire for full fiscal autonomy.

He also claimed the SNP could demand concessions they know in advance Labour will not agree to in order to push for a second referendum.

Mr Balls said full fiscal autonomy for Scotland would cut Scotland off from proceeds of a mansion tax, bankers' bonus tax and pension cash.

He said: "The SNP position is now utterly ridiculous. Their manifesto commits them to vote for fair taxes at the top to provide additional funds for public services in England, Wales and Northern Ireland.

"But it goes on to make clear that on no account must these changes help Scotland - because that would mean the pooling and sharing of risk and resources across the UK, something to which they are fundamentally opposed.

As Ms Sturgeon said the SNP would work with a Labour minority government, Mr Balls said the party would make undeliverable demands.

He said: "SNP MPs will demand things they know we would never deliver, like an end to the Barnett formula or end to UK pensions."

Mr Murphy said the SNP was "stoking division and discontent".

He said if Labour didn't agree to full fiscal autonomy the SNP would seek another referendum.

He was referring to a speech made by Stewart Hosie during the SNP deputy leadership contest last October when he said he said a quarter of no voters wanted "maximum devolution".

He added: "We expect them to disappoint us, but when they start to disappoint substantial numbers of people who voted no, then there's a game-changer for what happens on the road to independence."

Mr Murphy said: "Stewart Hosie says if we can't introduce dull fiscal autonomy then its grounds for a second referendum.

He added: "We will be honest on this the Labour party will never abolish the Barnett formula, never end the UK welfare state or opt out of the UK pensions system.

The choice is between a party for a fairer economy or for another referendum."

Ms Sturgeon said Labour like the Tories were now desperate.

She said they were disregarding the outcome of the vote in Scotland because they were focussed on a majority government for their own self interest.

Ms Sturgeon said: "It is clear that the Westminster parties have hit the panic button.

"Instead of embracing the multi-party election that the public want, Labour and the Tories are clinging to the idea that they are entitled to a majority in Westminster, which every poll indicates isn't going to happen."

She said the two big UK parties were seeking to deny voters in Scotland their choice and be refusing to work with the SNP denying Scotland its democratic right to a voice at Westminster.

SM Sturgeon added: "Those Westminster politicians who have chosen to engage in the politics of negativity - and who are seeking to deny Scottish MPs their democratic rights in the House of Commons - are doing the public across the UK a deep disservice."

Despite Mr Balls and Labour leader Ed Miliband ruling out any deal, Ms Sturgeon again repeated the offer to co-operate with them.

She said: "The SNP is being open and honest about our position, that we will work to keep the Tories out and to keep Labour honest.

"Labour would never be forgiven if they let the Tories back in, in preference to working with the SNP."