Although dynamic labeling schemes for XML have been the focus of recent research activity, there are significant challenges still to be overcome. In particular, though there are labeling schemes that ensure a compact label representation when creating an XML document, when the document is subject to repeated and arbitrary deletions and insertions, the labels grow rapidly and consequently have a significant impact on query and update performance. We review the outstanding issues todate and in this paper we propose SCOOTER - a new dynamic labeling scheme for XML. The new labeling scheme can completely avoid relabeling existing labels. In particular, SCOOTER can handle frequently skewed insertions gracefully. Theoretical analysis and experimental results confirm the scalability, compact representation, efficient growth rate and performance of SCOOTER in comparison to existing dynamic labeling schemes.