Scottish Labour call for government to prioritise jobs and economy over EU

Kezia Dugdale - credit Scottish Labour

Governments in Holyrood and Westminster should prioritise stimulating the economy in the wake of the vote to leave the European Union, Scottish Labour has suggested.

The party has published a Brexit action plan calling for investment in public infrastructure and measures to tackle uncertainty, especially among the low paid.

While supportive of Nicola Sturgeon's attempts to protect Scotland's relationship with the EU, Labour warned the country's economic prospects made "grim reading" and needed to be addressed.

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As well as spending on infrastructure and the establishment of a new business loan fund to support "strategic" industries, proposals also include previous Scottish Labour manifesto pledges of raising income tax by a penny and mandating public sector contractors to pay the Living Wage. 

Party leader Kezia Dugdale said the Government had a "moral duty" to protect jobs. 

"The consequences of the UK voting to leave the EU will be felt for years to come, and the only thing we know for sure is that we don't know very much about what the future holds," she said.

"Labour stands with the majority of Scots who want to be part of the UK and the EU - we won't give up pursuing those options but protecting jobs and public services must come first."