Left-wing MSP confirms she is not standing in Scottish Labour leadership contest

Katy Clark has said she will not run to replace Anas Sarwar - but demanded that candidates push for more public ownership.

It means that the race is now down to three: Monica Lennon, Michael Marra and Joe Fagan.

The contest was sparked after Mr Sarwar resigned from Holyrood to take up a place in the House of Lords and a job in the UK Government.

Baroness Clark said Scottish Labour must demand that care, buses, leisure, and educational services are all returned to the public sector.

She said: "Over recent decades, privatisation and outsourcing have led to our public services being run to generate private profit rather than delivering for ordinary people.

"Putting our public services into the hands of private companies and multinationals has led to poor value for money and little democratic control.

"Scottish Labour must argue for insourcing and demonstrate why public ownership works.

"That means demanding that all outsourcing and contracting out is reversed and that services such as such as home care are provided in the public sector.

"Rather than re- rendering involving multinationals, when contracts for justice services such prisoner transfer come to an end public sector provision needs developed.

"Public funding models used in the UK are very expensive compared to other countries and cannot continue to be used in their current forms."

Baroness Clark also said the party should work more closely with trade unions and push for full employment.

She said: "We need to remember that we are a socialist party. We were created by the trade unions and others to be a voice for working-class people.

"Unemployment and lack of opportunities continue to affect the lives of too many, particularly young people, across Scotland. Scottish Labour must bring forward a plan for the economy, for full employment and to ensure people have the skills needed for the well-paid jobs of the future.

"Our MSPs and MPs must take up trade union campaigns and issues. Our relationship with the trade union movement is unique and the link with our affiliated trade unions is vital for rooting us in communities.

"This leadership contest is the opportunity to discuss how we turn this idea of a Parliament which delivers for working class communities and regenerates our local economies into a reality.

"That means selecting more candidates from working class communities and more women, as well as a much better representation of those from ethnic minority backgrounds."

Ms Clark not running should help Ms Lennon, who is struggling for MP and MSP endorsements.

Candidates need three MPs and three MSPs backing them.

Ms Lennon currently has two MPs but no MSPs. Ms Clark not standing may mean that she and fellow left-winger Carol Mochan give Ms Lennon the Holyrood nominations she needs.