The answer appears to be to become the party of the centre-left that supports full federalism within the UK. The party of Devo-max. Devo-max is generally agreed to mean that the Scottish parliament has all powers except for those over defence and foreign affairs and retains all money raised in Scotland, paying an agreed contribution towards defence and foreign affairs.
This would seem like a smart move for Labour. It would give them a unique selling point to the voters, one which could get them back in the game, since it would almost certainly have been the most popular option had it been permitted on the referendum ballot paper. But what is this we see?
[Anas] Sarwar, who is expected to take a senior frontbench role after winning a Holyrood seat on Thursday, said finding a middle way between nationalism and unionism was the “fundamental challenge” still facing the party.
[...] Sarwar’s intervention adds to growing pressure on Dugdale to agree that Scottish Labour should investigate home rule, a form of federal arrangement in which Holyrood has more control over taxation, welfare services and law-making.
Under that model, Westminster would chiefly control foreign policy, defence and perhaps some major spending areas such as pensions.Dear god, it's the Smith Commission all over again. Despite the fact that federalism/Devo-max has a generally accepted definition, Labour want to interpret it as a few more token powers that they feel like having, leaving most of them with Westminster.
Clearly Labour have still learned nothing from their precipitous decline. And despite all the protests about how they will start listening to the voters, it's clear that they have no intention of doing any such thing. They are still of the mindset that they know what's best for Scotland, so we needn't worry out little heads about it.
Mr Sarwar is widely tipped to be Ms Dugdale's successor, possibly after next year's council elections if their performance is as bad as this year's. On the above evidence of his thinking, he may well be the last.
With regard to the LGBT and equality issues Ms Dugdale raises, there is no doubt that more can be done on this front. However, some credit should be given to the SNP for having a gender-balanced cabinet. It was notable that Labour immediately copied this idea, for the first time in their history in Scotland, perhaps in an attempt to shift the perception that they are a party where business is done between men behind closed doors.
Mr Soutar seems to have become something of a scarecrow for Labour, dragged out whenever Labour want to suggest a shadowy conspiracy in Holyrood. There is no doubt that the man holds some unpleasant views on LGBT matters, but to suggest that he is somehow the eminence grise of Scottish politics is a bit of a stretch. It is also quite hypocritical of Labour, who have not always been very particular about their donors.
Ms Dugdale, to me, comes across as someone who talks the talk but doesn't really walk the walk. It's as if she knows all the steps but just doesn't have the natural talent to make a good dancer. She is in good company, however, as I don't see any of her colleagues as having any more talent than she does. The overall effect is that it gives what she says a certain air of insincerity which people are picking up on. This is one of their major problems, and not one that can be solved easily.