People in Scotland would be more than £10,000 a year better off in an independent Scotland, the First Minister has said.

Humza Yousaf said large-scale government intervention in the economy was needed to ensure the country realises its potential.

In a speech on industrial strategy at Glasgow University he said the UK government is out of step with major economic powers and successful countries and that has led to low growth and high inequality.

Glasgow Times: He said the idea of large-scale public investment is “back in fashion” but that the UK is standing still by being outside the European Union.

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Yousaf said: “The way Westminster runs the economy isn’t working for Scotland.”

He cited Brexit and restrictions on inward migration as policies that hamper economic progress.

Economic analysis of major countries, he said, led to the Resolution Foundation think tank concluding that had the UK emulated “the average income and inequality of similar countries then the typical household would be £8,300 better off.”

He said: “If we use the same analysis for countries that are similar to Scotland, the prize for the typical Scottish household would be even greater. They would be £10,200 better off.”

“That, said the First Minister “is the huge prize of independence”.

He said it would not happen overnight and the figures were the Resolution Foundation's, not his, but said it shows the opportunity of independence.

In what was an election campaign speech in all but name, he said both Labour and Tories wanted to remain outside the EU and cut inward migration.

He said: “Those are just two examples which demonstrate that for the two main UK parties, Westminster political interests will always over-ride Scottish economic interests.”

His post-independence industrial strategy was three-pronged.

It was, “rejoin the EU”, set up a dynamic government ministry “to drive industrial policy and consensus building across institutions”.

 And “large-scale public investment in key areas of comparative advantage.”

The investment he said would be around £20billion over a decade which would come from oil and gas revenues and borrowing.

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The First Minister said: “Today across the globe explicit industrial policy is back.

“We can see that by looking at what’s been happening in the US, China and the European Union.”

He added: “In all this, where does the UK stand? Well, the answer very simply is that the UK stands still.”

Yousaf said the EU’s Green Deal Industrial Plan has the potential to support the rapid development of Scotland’s green sectors.

It would, he said, provide a “predictable and simplified regulatory environment, additional sources of finance and access to the EU and other markets”.

Carbon Capture and Storage (CCS), was he said an obvious area where Scotland could benefit.