SCOTTISH Labour leader Kezia Dugdale called yesterday for a progressive federal solution to mend divisions between Scotland and England with the union in “terrible peril” because of the Tories and SNP.

Ms Dugdale put forward proposals for a “people’s constitutional convention” to decide a new political settlement which could see increased powers handed to the devolved nations as well as regions in England.

Labour leader Jeremy Corbyn has also called for such a convention.

Speaking on BBC Radio Scotland’s Good Morning Scotland programme, Ms Dugdale said: “The UK represents the best possible way to redistribute wealth across the country.”

She added: “I want to tackle poverty and inequality, that is why I am in the Labour Party and I think the UK is the best means by which we can do that.”

Ms Dugdale argued that British unity was in “terrible peril because of a gamble the Tories have forced with Brexit and the SNP’s obsession with independence.”

She continued: “Our country is divided. The way to bring that country back together is by an Act of Union to save the Union. Let’s have a federal solution for the United Kingdom that offers the solution that we need.”

She backed staying in the European single market, despite Britain’s vote to leave the EU, claiming it would protect jobs.

Scottish First Minister Nicola Sturgeon had so far failed to produce any “real evidence” of how Scotland — of which a majority of citizens voted to remain in the EU — could have a separate deal which would allow it to remain in the single market, she added.

Red Paper Collective convener Pauline Bryan welcomed Ms Dugdale’s commitment to a progressive federal arrangement.

She said that it was the best way to redistribute wealth within Britain, but warned that it “must however go hand in hand with tackling the economic system that protects the unfair distribution of wealth throughout the country.”

Ms Bryan added: “The SNP has no strategy for economic democracy but Labour has the opportunity now to rethink the ownership of our economy. It can immediately argue for public planning and ownership of railways, green energy and land.”

Mr Corbyn and Labour MP Jon Trickett are working with the Scottish Labour leader to flesh out her federalism plans.

With local government elections taking place in Scotland this coming May, Ms Dugdale also argued Labour councillors would be “the last barrier between the people and the cuts” to public services.

Scottish Labour wants Holyrood to use its new powers to increase income tax on the richest, which the SNP has consistently opposed.

Ms Dugdale said the SNP’s decision not to use newly devolved powers to raise taxes on the wealthy made them as bad as the Tories.

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