ED Miliband pledged yesterday to hand “crucial” new powers to the Scottish Parliament if he is elected prime minister next year.

On a visit to Dundee's Michelin tyre plant the Labour leader announced a new “contract” with the people of Scotland — five key pledges that he vowed his party would deliver in its first batch of legislation.

He said: “We can have the best of both worlds, which is a Scottish Parliament, and the strength and security and social justice that the United Kingdom can bring, if we can elect a Labour government which is what I’m determined to do.”

Mr Miliband’s pledge follows Labour’s devolution commission, which recommended in March that Scotland get more responsibility over income tax, including an ability to increase the higher rates — along with powers over housing benefit and the work programme.

The central commitment of the Miliband manifesto will be a new Scotland Act devolving further powers north to Holyrood.

The “contract” also includes a pledge to bring in a 50p rate of income tax for top earners — which could affect 14,000 people north of the border — as well as reintroducing the 10p tax band for low paid workers.

Labour would freeze gas and energy prices, as well as introduce a jobs guarantee for young people who have been out of work for a year or more, offering them a six-month paid position to help get them back into the employment market.

Zero hours contracts would be banned, with workers being given more rights to demand fixed hours contracts, a move which Labour believes could help at least 90,000 workers in Scotland.

“We are less than a year away from a Labour government that will give more powers to the Scottish Parliament, freeze energy bills, get our young people back to work, tackle the exploitation of zero hours contracts and have a fairer tax system,” Ed Miliband said.

“That’s the social justice agenda, the contract with the people of Scotland that I offer.”

The SNP claimed Mr Miliband had “nothing to offer” and insisted only independence would guarantee more powers for Holyrood.

SNP MSP Stewart Maxwell said: “Labour can’t even guarantee Ed Miliband will become Prime Minister — never mind the powers Scotland needs to thrive.”