First minister says 'bad' cuts – expected to lead to a fall of about £4bn in Scottish budget – are attack on compassion, fairness and social justice

This article is more than 9 years old

This article is more than 9 years old

Alex Salmond today claimed full independence would save Scotland's public services and economy from the worst effects of the "bad" spending cuts due to be unveiled this week.

The first minister said Wednesday's comprehensive spending review – expected to lead to a fall of about £4bn in the Scottish budget – was an attack on the core principles of compassion, fairness and social justice dear to Scottish voters.

He told the Scottish National party's annual conference in Perth that he would "not be a manager of Westminster-directed cuts nor part of parliament which acts as a message boy for decisions made elsewhere".

In a speech that sought to be ambitious in its vision and scope before next May's Scottish elections, Salmond said: "There is no point in being a pocket money parliament when the pocket money stops.

"We are not the helpless agents of globalisation, but free citizens of a wealthy land. We are not slaves to the banking system or vassals to the lords of high finance.

"I do not want independence for its own sake, but for the sake of the people here and now and those to come."

The Scottish secretary, Michael Moore, has predicted that the cuts would take Scotland's funding back to its level in 2005 – about £25bn, a drop of some £4bn – by 2015.

The Scottish government claims that keeping all Scotland's share of North Sea oil and gas would leave it £1bn a year better off.

Salmond's ministers have begun setting out cuts in public services, including a 25% cut in NHS managers, but the first minister's main aim today was to rally his party for the 2011 Scottish parliamentary elections.

After nearly four years in power, the SNP faces a bruising contest. Early opinion polls suggest Labour is poised to regain power at Holyrood and form its own minority government.

Labour – now the only major party at Holyrood which is not in government – will attack the nationalists for breaking a series of pledges at the last Scottish elections, presiding over higher unemployment, NHS job cuts and a collapse in school building.

During the conference, the SNP has pledged to keep the freeze in council tax for a further two years, costing £70m a year.

Salmond announced that up to 6,000 government and NHS workers would get a "living wage" of at least £7.15 an hour – costing around £3m – and Scotland's seven police forces could be merged.

He did not specify a number, but it is thought ministers believe only three forces are needed.

He also announced that Joseph Stiglitz, the Nobel prize-winning economist who has been severely critical of George Osborne's spending plans, would now advise the SNP government on the economy.

Campbell Christie, a former head of the Scottish TUC, will lead a commission inquiry into public services. But Salmond has attempted to sidestep a policy by policy confrontation over spending cuts by accusing all his main opponents of preventing Scotland from achieving its full potential – full independence within the European union.

He acknowledged that the SNP had failed to make its case on independence by assuming voters knew what it meant, and reached out to Labour and left of centre Liberal Democrat voters.

"What I mean by independence is the profound right to enjoy the same equality of opportunity, and to live in more equal communities," he said. "What I mean by independence is jobs – to protect and create them.

"Is this a grand dream? Yes. But that is the difference between us and the other parties in this election.

"We have the vision and we have the means to deliver it ... [I] fight not for flags and anthems, but fairness and compassion. I fight for a generation that is not burdened by the mistakes of this one."

The three main UK parties killed off his bill for a referendum on independence in this parliament and only about 25% of voters currently favour independence.

But the SNP believes the spending cuts will significantly bolster its arguments for autonomy, and plans to make that dispute central to its election campaign.

Iain Gray, the Scottish Labour leader, said: "Alex Salmond is the last man Scotland should listen to on jobs and cuts. [Due] to the Salmond slump, we have lost 50,000 construction jobs and the SNP have also cut 3,000 teachers and 4,000 NHS jobs – all this with a record Scottish budget.

"Now is a time for honesty, tough decisions and protecting and creating jobs. However, Alex Salmond thinks he can get by on election gimmicks, dodge all responsibility and blame someone else for his legacy of failure."