The Red Paper Collective has united those on the Left across the trade union and Labour movement committed to advancing the interests of working people.

We have kept the issues of class to the fore during the referendum and will continue to do so during the debate on greater devolution.

We welcome the commitment to more powers for the Scottish Parliament, but what is important is not the powers themselves but how they are used to challenge inequality, redistribute income and enhance economic and social democracy, above all by increasing the collective influence of working people.

To achieve these objectives we believe the Barnett formula should be retained but revised so that it is based on need rather than population, with consideration for any short-term impact on the Scottish budget. It also requires that all income tax is devolved to allow the Scottish Parliament more flexibility in creating a progressive tax system, improving public services and increasing redistribution. Other taxes should be used for redistribution throughout the UK and there should be no competition to reduce business taxes.

The Scottish Parliament's powers of borrowing for capital and revenue purposes need to be extended, ending dependence on Public Private Partnership or Private Finance Initiatives including Non-Profit Distributing projects. The Parliament should also have the power to form publicly owned enterprises to rebuild Scotland's industrial base using green technology and high-value manufacturing.

There should be a Scottish-style "Marcora Law" giving workers and communities the chance to convert an enterprise to democratic ownership if it is put up for sale, faces takeover, is threatened with closure or is subject to asset stripping. The same should apply to land where the interests of those dependent on it are in jeopardy or where absentee landlordism prevents the development and use of land. The Scottish Parliament should have powers to promote start-up co-operative and common ownership ventures.

In relation to the EU, there should be a process of consent between Westminster and Holyrood over EU decisions affecting areas within the Scottish Parliament's jurisdiction or where they have an impact. The Scottish Parliament should have the right to challenge the continued deployment of nuclear weapons.

Further devolution cannot stop at the Parliament. At local level, councillors should regain political rather than managerial roles. They should have greater control over local government finances including business rates; ring fencing should be minimal and the council tax freeze should end. Devolution should include the Crown Estates.

We would also include powers over labour market regulation. In particular there should be a Scottish Health & Safety Executive, full control over employment tribunals, powers to set a statutory minimum wage based on the Scottish living wage and powers to legally enforce workplace democracy based on trade union collective bargaining.

Welfare benefits, attendance allowance and control over employment schemes should be devolved as well as housing benefit as it is closely linked to housing policy. While the state pension should remain at UK level, public service pensions covering devolved services should be fully devolved and democratised. All of this should be underpinned by the Parliament enshrining a commitment to equality strengthened by the power to legislate on human rights.

Devolution of powers must maintain the ability to redistribute a significant portion of tax income throughout the UK on the basis of social need while enhancing both political and economic democracy.

We believe in the development of progressive federalism. It is progressive because it can advance equality. It continues the process of federalism started with devolution but recognises that other regions of the UK must also have the power to contest neo-liberalism and develop economic and social policies appropriate to regional needs.