Jim Murphy pledges redistribution from south to north by hitting the City of London

Guy Bentley
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Murphy to use bankers bonus tax to fund Scottish students (Source: Getty)

Scottish Labour leader Jim Murphy will unveil plans to spend £1bn on Scotland's "young working-class" in the heart of the City of London.

The money for the new spending spree will come, in part, from reintroducing the bankers' bonus tax, which disproportionately hits workers in London.

Murphy will say in the speech that the tax "is a guarantee of opportunity that the SNP can’t deliver because they don’t believe in redistributing from south to north".

He added: “It is a guarantee that the Tories won’t deliver because they do not believe in redistributing from rich to poor."

Labour also plans to hike the Treasury's tax take by scrapping pension relief for higher earners. Should Miliband win the General Election, around 5,000 young Scots would be eligible for the party's Jobs Guarantee scheme.

The bankers' bonus tax that was abolished by the coalition and replaced with a bank levy, would also be used to fund free university education and a £1,000 increase in Scottish student bursaries. English students attending Scottish universities would still have to pay the full price of £9,000.

"This is an unprecedented investment in our young people, only made possible by harnessing the wealth of the whole of the UK, including the wealthiest in the City of London," Murphy will say.

The Labour party is in a bitter battle with the SNP to retain its strong presence north of the border. Despite Murphy's best efforts, Scottish Labour is being continually hammered in the opinion polls.

Yesterday, an ICM poll for The Guardian, showed Labour on course to shed 29 of its 41 seats north of the border.