SCOTLAND must have “more devolution” to ditch neoliberalism and austerity and fuel a “green industrial revolution,” Richard Leonard will say today.

In a major speech in Motherwell, North Lanarkshire, the Scottish Labour leader will demand an “urgent and decisive breakthrough” in saving the troubled BiFab yards in Fife, which make infrastructure for renewable energy sources.

Following celebrations of 20 years of devolution last weekend, Mr Leonard will praise the Scottish Parliament for becoming “one of the most powerful devolved institutions in the world.”

But he will also argue that Holyrood has “failed to tackle some of the biggest issues facing Scotland,” including inequality, land ownership and precarious employment.

“For the avoidance of doubt we will not attain the transformative change we need by leaving it to market forces,” he is expected to say.

“If we are to re-purpose the whole Scottish economy it cannot be done according to the central tenets of neoliberal economics: the old ideas of privatisation, of austerity, of rolling back the state.”

Mr Leonard will instead call for an “innovative state” through using existing devolved powers “in procurement, in planning, in licensing, to ensure that low carbon and renewable energy developments bring far greater economic benefit to communities.”

And he will say a new Labour working group will explore “Scotland’s options for change”, including extending devolution and abolition of the House of Lords.

“People want to see more decisions being made in Scotland,” he will add. “But don’t want to walk away from a successful economic, political and social union that has lasted for more than 300 years.”