Kezia Dugdale: 'Huge mistake' to have Ruth Davidson lead Unionist campaign in indy ref 2

Kezia Dugdale at the Scottish Labour conference in Perth
Kezia Dugdale at the Scottish Labour conference in Perth Credit: PA

Kezia Dugdale has argued it would be a “huge mistake” for Ruth Davidson to lead the Unionist campaign in a second independence referendum but suggested there should be a second question on the ballot paper proposing her plan for a federal UK.

The Scottish Labour repeatedly emphasised she did not want another separation vote, but argued that a “non-political” voice should lead the pro-UK side rather than the Scottish Tory leader.

Speaking at a fringe event at the Scottish Labour conference, she said there would be no Better Together-style campaign comprising the three main Unionist parties and instead Labour would run its own “very distinct” operation.

However, she argued that there was a “legitimate case” for a second question appearing on the ballot paper proposing a form of federalism. Party delegates yesterday used the first day of the Perth gathering to vote for the move.

Ms Dugdale has been trying to reassert Scottish Labour’s Unionist credentials since she gave a disastrous interview during last year’s Holyrood election campaign in which she suggested she would consider voting for independence following a Brexit vote.

A constitutional convention would be set up to decide what form of federalism should be adopted but it could mean all powers except foreign affairs, defence and control over the currency being devolved to Holyrood.

However, Labour wants to continue with a system of sharing tax revenues across the UK rather than making Scotland financially autonomous.

Kezia Dugdale at the Scottish Labour conference in Perth
Kezia Dugdale at the Scottish Labour conference in Perth Credit: PA

Speaking at a fringe hosted by the Daily Record, Ms Dugdale said there is "no escaping" the economic case for independence has weakened since 2014 as a separate Scotland would be faced with a £15 billion annual public spending deficit.

She said: "So, as much as I hear Nicola Sturgeon talk about an improved social security system, welfare and all the things she would do if we were independent, the hard cash to realise those ambitions isn't there."

Ms Dugdale added: “I can certainly see a legitimate case for if there were to be a referendum that you might put something as strong as a federal solution for the United Kingdom on the ballot paper."

Any second question would have to be agreed by the UK and Scottish governments if Theresa May devolved the power to stage another referendum to Holyrood.

Kezia Dugdale was opposed to Ruth Davidson leading the Unionist campaign in any second independence referendum
Kezia Dugdale was opposed to Ruth Davidson leading the Unionist campaign in any second independence referendum Credit: Sophie Gerrard

But Ms Dugdale bridled at the suggestion that Ms Davidson should lead the Unionist campaign despite the Scottish Tory leader enjoying a higher popularity rating than Ms Sturgeon and having led the Tories to become Holyrood’s main opposition party.

The Scottish Labour leader said “that would be a huge mistake” and argued that the Unionists should draw lessons from the EU referendum by choosing a non-politician.

Earlier, Alex Rowley, her deputy, won applause from delegates by promising that Labour would “never again” share a platform with the Conservatives in a campaign. Many blame their involvement with Better Together for their decline despite its clear victory in 2014.

Ms Dugdale argued that Labour politicians could join the Tories arguing for the Union “side by side from a very different position.” But she added: “It’s quite another thing to be signed up to a body or campaign unit.”

Ms Davidson said: “On the day Labour is licking its wounds over its humiliation in the Copeland by-election, the Scottish party decides the way to reconnect with the real lives of ordinary families is a sleep-inducing plan for people's constitutional convention and yet more upheaval to our precious union.

"This is a party that doesn't know when to stop digging. Never has Scottish Labour looked more out of touch or irrelevant."

Earlier, Ian Murray, Scottish Labour’s only MP, used his speech to argue that the Nationalists have no mandate for a second referendum but an SNP spokesman said this was “extraordinarily desperate stuff”.

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